A marketplace seller makes retail sales through either a physical or electronic marketplace operated by a marketplace facilitator or directly resulting from a referral by a referrer. If a marketplace seller does not have physical presence in Washington, you are a remote marketplace seller.
Marketplace sellers (without physical presence)
Remote marketplace sellers making retail sales to Washington consumers (including sales made through a marketplace) may be required to register. Find out if you need to register.
Marketplace sellers (with physical presence)
If you have physical presence, you must register with the department even if you do not meet an economic threshold.
Retail Sales Tax
Sales made through a marketplace facilitator
- You do not need to collect/submit sales tax on sales made through a marketplace facilitator, if you have received confirmation that the marketplace facilitator will collect sales tax. Report these sales under the state retail sales tax classification and take the deduction Retail Sales Tax Collected by Facilitator.
- If you do not have confirmation from the facilitator, you are responsible for the sales tax.
Note: Marketplace facilitators are required to collect/submit sales tax on behalf of marketplace sellers with physical presence in Washington.
Sales made through your own website, catalog, or in-person (direct sales)
- Sellers must collect and submit sales tax for sales made directly to the consumer, such as sales from their own website or sales made in-person.
- Sales made directly to consumers should be reported under both the state and local retail sales tax classifications. Sales tax is calculated based on the location where the sale is sourced or delivered. Use the department’s sales and use tax tools to calculate the correct rate.
Business and Occupation Tax (B&O)
- Report all retail sales under the Retailing B&O tax classification. This includes sales made directly to the consumer, as well as sales made through a marketplace facilitator.
- If you do not have B&O nexus in Washington, you can claim a No Local Activity deduction.
If you have questions regarding your tax reporting requirements, email DORMarketplaceFairness@dor.wa.gov or call 1-800-426-1776.