Starting October 1, 2018, the Department of Revenue will require businesses that do not have a physical presence in Washington to collect sales or use tax on taxable retail sales if they exceed $100,000 in gross retail sales or have 200 or more retail transactions sourced to this state during the previous or current calendar year.
How do I determine if a sale took place in a particular year when deciding whether I meet the thresholds?
Use your normal accounting method to determine when a sale took place. The date of the sale could be based on the:
- invoice date;
- date the product is shipped;
- date the product is delivered or received; or
- date you receive payment.
You can use whichever date makes sense for your business model, as long as it does not distort or manipulate your sales.
If I am required to start collecting sales or use tax on Oct. 1, how do I determine which ongoing sales I will need to collect sales tax on?
You should use the same method as described above to determine if a retail sale took place on or after Oct. 1.