A marketplace facilitator is a business that does the following three activities: (RCW 82.08.010(15)):
1. Contracts with sellers to facilitate the sale of a marketplace seller’s product through a marketplace for consideration.
2. Engages, directly or indirectly, in transmitting or otherwise communicating the offer or acceptance between the buyer and seller. This does not include merely advertising.
3. Does any of the following activities, directly or indirectly, with respect to the seller's products:
If you have questions about whether you qualify as a marketplace facilitator, you may request a binding tax ruling.
A business is not a marketplace facilitator if they:
Marketplace facilitators making sales to Washington consumers (including sales made on behalf of marketplace sellers) are required to register if they:
Beginning July 1, 2019, marketplace facilitators must provide each of their marketplace sellers with access to information regarding gross Washington sales made on their behalf during the previous month. Facilitators must send this report to sellers by the 15th of each month.
If you do not provide the required notice to sellers by the due date, you will not be eligible for liability relief.
There are two types of liability relief for marketplace facilitators (RCW 82.08.0531).
A marketplace facilitator is relieved of liability to the extent of the error for not collecting the correct amount of tax only if they meet all of the following criteria:
Note: If a facilitator is relieved of liability, the marketplace seller is solely liable for the amount of uncollected tax.
A marketplace facilitator is provided some liability relief for not collecting tax on taxable sales through their marketplace only if they meet all of the following criteria:
Type 2 liability relief amounts
Relief cannot exceed 10% of the total tax due on facilitated sales into Washington during 2018.
Relief cannot exceed 5% of the total tax due on facilitated sales into Washington during 2019.
2020 and after
Relief is no longer available
You should report sales/use tax collected on behalf of marketplace sellers using our secure online portal My DOR.
Note: Sales tax is calculated based on the location where the sale is sourced or delivered. Use the department’s sales and use tax tools to calculate the correct rate. To determine whether a product is subject to Washington sales tax use the taxability matrix.
Marketplace facilitators generally earn commissions from marketplace sellers when facilitating a sale. If a marketplace facilitator has economic nexus with Washington, its commission income is subject to B&O tax under the Service and Other Activities classification for facilitated sales that are delivered or sourced to Washington.
For more information, see Apportionment.
Common retail sales and use tax exemptions include:
See our retail sales and use tax exemption webpage for a more extensive list of exemptions.
Call 360-704-5900 or email DORMarketplaceFairness@dor.wa.gov.