Changes to registration and retail sales/use tax collection effective March 14, 2019.
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. Find out if you need to register.
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.
If you collect Washington sales tax, you must register your business in Washington. To register:
- Complete a Business License Application online at bls.dor.wa.gov.
- 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) number. Keep this number, you will need it when you report.
If you need help registering, call our Business Licensing Service at 1-800-451-7985.
Or, you can register through the Streamlined Sales Tax Registration System.
Note: Legal entity registration is not required for businesses located outside Washington state to be able to complete the licensing process with the Department of Revenue. We recommend that you seek legal counsel before making a legal entity registration decision due to the potential legal ramifications involved.