Use this information to determine if you meet the economic nexus registration threshold.
- Calculate the threshold using all of your retail sales to Washington customers, including sales made through a facilitator, through your own website or otherwise.
- Include exempt sales when calculating the threshold.
- Apply the threshold to the current and preceding calendar year.
- Register your business to submit your collected sales tax. You will be assigned a Unified Business Identification (UBI) number—Washington does not have a sales tax permit.
$100,000 in annual gross retail sales
Effective Oct. 1, 2018, out-of-state businesses without physical presence and more than $100,000 in annual gross retail sales to customers in Washington must register their business and collect and submit Washington retail sales tax.
- Once you meet the threshold, you are required to collect and report for the remainder of the current and the following calendar year.
- If you did not meet the threshold in the previous year, you must begin to collect on the first day of the month that starts at least 30 days after the date you met the threshold.
200 retail transactions
From Oct. 1, 2018 to March 13, 2019, businesses who had 200 transactions with Washington customers also met this threshold. On March 14, 2019 the 200 transaction criteria was eliminated.
However, if you only met the 200 transaction criteria prior to March 14, 2019, you are still required to register your business to collect and submit Washington retail sales tax for these periods:
- Oct. 1, 2018 to Dec. 31, 2018
- Jan. 1, 2019 to March 13, 2019
As of March 14, 2019, you are no longer required to collect retail sales tax unless you exceed the $100,000 threshold in the current or previous year, or you have a physical presence in Washington.
Call 360-704-5900 or email DORMarketplaceFairness@dor.wa.gov.