NOTE: New requirements for registration and retail sales/use tax collection effective October 1, 2018.
What is a marketplace seller?
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)
See the remote seller page for information on registration and tax collection requirements.
Marketplace sellers (with physical presence)
The following are the requirements of marketplace sellers with a 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. Marketplace facilitators are required to collect/remit sales tax on behalf of marketplace sellers with physical presence in Washington.
- Sales made through a marketplace facilitator should be reported under the state retail sales tax classification, but the marketplace seller should take the deduction “Retail Sales Tax Collected by Facilitator (101)”.
Note: You do not have to collect sales tax as long as you have received confirmation from the marketplace facilitator that the facilitator will collect sales tax. If you do not have confirmation from the facilitator, you are responsible for the sales tax.
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.
Sales to Washington consumers
Marketplace sellers do not need to collect retail sales tax or notify customers regarding use tax for sales made through a marketplace, the marketplace facilitator will do so on behalf of the seller. However, you may owe Business & Occupation tax. Visit our remote seller page for more information.
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.
- See the business and occupation nexus page for information on economic nexus if you do not have physical presence in Washington.
If you have questions regarding your tax reporting requirements, email DORMarketplaceFairness@dor.wa.gov or call 1-800-426-1776.