Businesses who import goods to Washington may have retail sales tax and business and occupation tax (B&O) responsibilities in Washington state.
Imported goods are subject to sales tax and B&O tax if the businesses importing the goods meets either an economic nexus threshold or have physical presence. For more information, see our guide regarding Out-of-state businesses reporting thresholds and nexus.
Additionally, other taxes and fees imposed on the buyer must be collected, such as the solid fuel burning device (wood stove) fee and the studded tire fee.
Business registration process
You are required to register your business with the Department of Revenue, if you have to collect retail sales tax or pay B&O tax in Washington. You can register your business online by filling out a Business License Application.
After you have registered your business, you will receive a Unified Business Identifier (UBI)/Account ID. You will need this number whenever you interact with the Department of Revenue. You will also be assigned a tax filing frequency of monthly, quarterly, or annually based on your estimated annual business activity.
Monthly and quarterly filers are required to file online through our e-file system, My DOR. You will submit any collected sales tax and pay B&O tax or other fees on the same return.
My DOR can be accessed through the Log in button on our homepage.
B&O wholesale import exemption
A limited B&O import exemption is available only for the following:
- wholesale sales of unroasted coffee beans
- wholesale sales of tangible personal property between a parent company and its wholly owned subsidiary