Beginning January 1, 2018, remote sellers making $10,000 or more in retail sales to Washington purchasers must either:
- Collect and remit sales/use tax on sales to Washington purchasers
- Follow the use tax notice and reporting requirements explained below
What is a remote seller?
A remote seller is a seller, other than a marketplace facilitator or referrer, who does not have a physical presence in Washington and makes retail sales to Washington purchasers.
CHOICE #1 – Collect and pay sales tax
Remote sellers that choose to collect and pay sale/use tax on their sales into Washington are required to register in Washington. To register, complete a Business License Application online at bls.dor.wa.gov. Be sure to indicate that you are a “Remote seller” in the business activity description of the application. Once processed, you will receive a Unified Business Identifier (UBI).
If you need help registering, call Business Licensing Service at 1-800-451-7985.
Collecting retail sales tax
Remote sellers that choose to collect and pay sales tax on their sales into Washington must collect sales/use tax based on the delivery location (or whomever sourced) in Washington. The Department of Revenue has information and tools to help businesses determine the correct sales/use tax rate.
You should file a return electronically.
- Report sales under the retailing B&O tax classification. If you do not have nexus in Washington, you can claim a “No Local Activity” deduction. See more on the new nexus standard for retailing B&O tax, effective July 1, 2017 (EHB 2163, Part III).
- Report the state portion of the sales tax under the retail sales tax classification and the local portion under the local sales tax classification. The delivery location determines the sales tax rate and four-digit location code used to report local sales. The Department of Revenue has information and tools to help businesses determine the correct sales tax/use rate.
- If a third party (e.g., marketplace facilitator) collects and remits some or all sales tax for you, you can take the deduction, “Retail Sales Tax Collected by Facilitator” under the retail sales tax classification for these sales.
Retail sales tax
- $10,000 threshold met in 2017, sales tax collection started January 1, 2018
- Threshold met for the first time in current year, seller begins collecting on the first day of the month at least 30 days after the date they met the threshold.
Example: a seller meets the threshold on February 15, 2018, sales tax collection begins April 1, 2018.
The $10,000 threshold applies to all the seller’s retail sales (both through their own website and through a facilitator).
B&O tax due (as of July 1, 2017)
- More than $285,000 in the current (2018) or prior calendar year ($267,000 for 2017 and prior) in retail sales into Washington, or
- At least 25 percent of total yearly gross receipts sourced or attributed to Washington
B&O threshold applies in the current or prior calendar year.
CHOICE #2 – Use tax notice and reporting requirements
If you have questions regarding your tax reporting requirements, email DORMarketplacefairness@dor.wa.gov