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Q:  How does an out-of-state seller of extended warranties report its sales?

A: 

The sales of extended warranties by out-of-state sellers are taxed in the same manner as in-state sellers when the out-of-state seller has nexus and delivery of the warranties occurs in this state. Sales tax does not apply if the out-of-state seller has no nexus or delivery does not occur in Washington. However, the purchaser of the extended warranty is subject to use tax on the value of the extended warranty when the property subject to the warranty is used in Washington.

More information
Special Notice - Extended Warranties Now Subject to Sales Tax (pdf)
Auto Dealers Guide - Warranties
WAC 458-20-257
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