NOTE: New requirements for registration and retail sales/use tax collection effective October 1, 2018.
Upload instructions and a template for the use tax notice and reporting annual report to the Department are now available.
What is a remote seller?
You are a remote seller if you do not meet the definition of a marketplace facilitator or referrer, you do not have a physical presence in Washington, and you make retail sales to Washington purchasers.
Sales to Washington consumers
Remote sellers making retail sales to Washington consumers (including sales made through a marketplace) must follow retail sales tax collection laws and may be required to register if you meet either of the two thresholds.
|Annual retail sales to WA||Annual transactions to WA||Action|
|Less than $10,000||199 or less||You do not need to register or collect tax.*|
|Less than $10,000||200 or more||You must register, collect, and submit retail sales tax|
|$10,000–$100,000||199 or less||
You must choose: register, collect, and submit retail sales tax;
follow use tax notice and reporting guidelines
|$10,000–$100,000||200 or more||You must register, collect, and submit retail sales tax|
|$100,000.01 or more||199 or less||You must register, collect, and submit retail sales tax|
|$100,000.01 or more||200 or more||You must register, collect, and submit retail sales tax|
*This assumes that you do not have a physical presence in Washington.
When determining if a facilitator meets either threshold, the total retail sales for the facilitator include:
- Their own retail sales; and
- The retail sales of all their marketplace sellers.
Reporting requirements for remote sellers collecting retail sales
You must register with the department if you have elected to collect sales tax, or are required to collect sales tax (see thresholds), and you must file a tax return.
- Report retail sales under the retailing Business and Occupation (B&O) tax classification. If you do not have B&O nexus in Washington, you can claim a “No Local Activity” deduction.
- Report the state portion of the retail sales tax under the retail sales tax classification and the local portion under the local retail sales tax classification. The delivery location determines the sales tax rate and four-digit location code used to report local retail sales. The Department of Revenue has information and tools to help businesses determine the correct retail sales tax/use rate.
- If a third party (e.g., marketplace facilitator) collects and submits retail sales tax on sales it manages for you, take the deduction, “Retail Sales Tax Collected by Facilitator” under the retail sales tax classification for these sales.
Collecting retail sales tax
You must collect sales/use tax based on the delivery location (or where the item is sourced) in Washington. The Department of Revenue has information and tools to help businesses determine the correct sales/use tax rate.