Any artist who charges retail sales tax when selling their artwork must obtain a business license. If you are selling your artwork to a retail consumer or client such as the Port, you must charge sales tax. When you sell to a wholesale client (someone who resells your work) you do not charge sales tax. Sales tax registration and all other necessary state registrations and licenses including trade name registration are included in the Master Business Application. There is no fee for tax registration.
Sales tax is not collected by the Port of Seattle and deducted from the award amount. Tax is reported by breaking out the rate and reporting to the IRS. The artist is responsible for reporting tax and filing any taxes due annually to the IRS.
Internal Revenue Service - Taxes
Businesses | Internal Revenue Service (irs.gov)
WA Business Licensing and renewals FAQs
Washington Department of Revenue
Department of Revenue – Opening a Business
Open a business | Washington Department of Revenue
