Businesses who import goods to Washington may have retail sales tax and business and occupation tax (B&O) responsibilities in Washington state.
Imported goods are subject to sales tax and B&O tax if the businesses importing the goods meets either an economic nexus threshold or have physical presence.
To see if you meet the retail sales tax nexus threshold, visit our Registration requirement for out-of-state businesses making retail sales page.
To see if you meet the B&O nexus threshold, visit our Out-of-state businesses page.
Business registration process
You are required to register your business with the Department of Revenue, if you have to collect retail sales tax or pay B&O tax in Washington. You can register your business online by filling out a Business License Application.
After you have registered your business, you will receive a Unified Business Identifier (UBI)/Account ID. You will need this number whenever you interact with the Department of Revenue. You will also be assigned a tax filing frequency of monthly, quarterly, or annually based on your estimated annual business activity.
Monthly and quarterly filers are required to file online through our e-file system, My DOR. You will submit any collected sales tax and pay B&O tax or other fees on the same return.
My DOR can be accessed through the Log in button on our homepage.
Changes to B&O and retail sales tax registration threshold coming Jan. 1, 2020
Beginning Jan. 1 2020, businesses who have more than $100,000 in gross annual income in the current or previous calendar year will be required to register, collect and submit sales tax on retail sales, and pay B&O tax. The gross income threshold includes all gross income including, but not limited to, income subject to the following B&O tax classifications:
- Service and other activities
Additionally, other taxes and fees imposed on the buyer must be collected, such as the solid fuel burning device (wood stove) fee and the studded tire fee.
B&O wholesale import exemption
A limited B&O import exemption is available only for the following:
- wholesale sales of unroasted coffee beans
- wholesale sales of tangible personal property between a parent company and its wholly owned subsidiary
Tax assistance: 360-705-6705
Business licensing: 360-705-6741