Washington State Advertising Services Tax (ESSB 5814) Information

1. Determine Whether Washington Advertising Services Tax (ESSB 5814) Applies

✔ Sales tax applies if the Advertising Service is Received in Washington, even if Agency Client is not located within the state of Washington.

• • Will any media be “received” from EMG Advertising Service in Washington State?

If Yes → WA Tax (ESSB 5814) Applies.

If the service is received entirely outside Washington → No WA Tax (ESSB 5814) Applies.

2. Resale & Exemption Verification

✔ If Agency Client is reselling EMG Advertising Services (e.g., an Agency Client purchasing from EMG on behalf of an end client):

• • Obtain a Washington Reseller Permit from the Agency Client

• • EMG will Verify the Permit & Keep the permit on file

Without a valid reseller permit → EMG must charge sales tax.

With a reseller permit → Agency Client is responsible for WA Tax (ESSB 5814) Compliance

3. Invoicing Requirements

If WA Tax (ESSB 5814) Applies:

✔ Add Washington sales tax as a separate line item(s)
✔ Use the correct local tax rate (destinations vary)
✔ State on invoice:
“Advertising Services received in Washington – taxable under ESSB 5814.”

4. Allocating Multi-State Campaigns

If EMG Advertising Service is “received” in multiple states:

✔ Allocate receipts based on the proportion received in Washington
✔ Tax only the portion attributable to Washington

5. EMG Advertising Services for WA Tax (ESSB 5814) Audit Protection

For every Washington-touching client, Unless Agency Client has claimed Resale & Exemption, EMG will maintain all of the following:
✔ Contracts showing Advertising Services scope
✔ Agency Client’s end client received usage by location(s)
✔ Copies of reseller permits where applicable
✔ Invoices with correct tax detail
✔ Proof of tax remittance

Frequently Asked Questions:
✔ My agency is not located in Washington State does this still apply to me?
o Yes. If media is received by your end client in the State of Washington this tax applies.
✔ My Agency is a licensed Tax-Exempt Reseller in the State of Washington
o Submit your active Reseller Permit to your EMG account alias email.
o Upon verification by the State of your active Reseller Permit ESSB 5814 taxes can be removed from your invoices.
o Verified Tax Exempt Resellers are still required to administer, collect, and pay taxes for ESSB 5814, you will need to consult a tax professional to self-administer this tax.
✔ Other Media vendors are not applying this tax, why is EMG?
o ESSB 5814 Applies to all non-broadcast media. You can expect this collection dating back to October 1, 2025 from all media vendors.
o EMG is taking swift action to be in front of this to prevent a huge tax bill and liability down the road.
✔ I heard that ESSB 5814 is being challenged in court and may be unwound?
o Washington State Advertising Services Tax (ESSB 5814) is currently under mediation in Federal Court and may ultimately be overturned or modified.
o While this review is in progress, EMG will continue to comply with the law as currently written.
o To protect our clients’ interests, all collected Washington sales tax will be held in a designated escrow account. If the ruling is reversed or amended, EMG will promptly refund any applicable taxes to affected clients.
o At this time, we are operating based on the information available and in full compliance with existing Washington State tax regulations.