Marketplace sellers

Marketplace seller definition

You are a marketplace seller if you make retail sales through either a physical or electronic marketplace operated by a marketplace facilitator. If you do not have physical presence nexus in Washington, you are a remote marketplace seller.

Registration requirements

Marketplace sellers (without physical presence nexus)

Remote marketplace sellers making retail sales to Washington consumers—including sales made through a marketplace—may be required to register.

Starting Jan. 1, 2020, remote marketplace sellers must register to report B&O tax and collect/submit applicable sales tax, if the seller meets either of the following thresholds in the current or prior year:

  • Has more than $100,000 in combined gross receipts sourced or attributed to Washington.
  • Is organized or commercially domiciled in Washington.

The receipts threshold applies to all Washington income, including retailing, wholesaling, service and other activities, and other apportionable activities. Calculate the threshold using all of your retail sales to Washington customers, including sales made through a facilitator, through your own website or otherwise. You also must include exempt sales when calculating the threshold.

Once you meet the threshold, you are required to collect and report for the remainder of the current and the following calendar year. If you did not meet the threshold in the previous year, you must begin to collect on the first day of the month that starts at least 30 days after the date you met the threshold.

For more information and thresholds for past periods, see our Out of state businesses reporting thresholds and nexus guide.

Marketplace sellers (with physical presence nexus)

If you have physical presence, you must register with the department even if you do not meet an economic threshold.

Sales through a marketplace facilitator

If you make all of your retail sales through a marketplace facilitator, you do not need to collect and submit retail sales tax if you have proof that the facilitator is doing so on your behalf. You will still file and pay your B&O and other taxes if you meet a registration threshold.

Monthly report from marketplace facilitator

Marketplace facilitators are required to provide you with gross sales information for all Washington sales made on your behalf in the previous month. This report is due to you within 15 days of the end of the month. You should use this report to calculate your business and occupation and other taxes.

If you do not receive the report on time, you may estimate your B&O using a method that is either approved or required by the department.


If you meet a registration threshold, then you must file a tax return.

  1. Report your gross (marketplace and direct) Washington retail sales under Retailing B&O.
  2. Claim a No Local Activity deduction if you do not have B&O nexus in Washington.
  3. Report your gross Washington retail sales on the State Sales and Use page.
  4. Take a deduction for your facilitated sales.
    1. Online: On the Deduction list, select Gross Sales Collected by Facilitator, and enter your Washington sales through a marketplace.
    2. Paper return: In the Deduction section, under Retail Sales Tax mark Other, and write explanation Gross Sales Collected by Facilitator.
  5. On the Local Sales page, enter the sales by location.
    1. Sales through a marketplace: Do not enter these sales, they will automatically be deducted from your gross Washington sales.
    2. Direct sales (sales through your website, catalog, or in person): Enter each sale by location code.

Note: Sales tax is collected 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.

See our excise tax return reporting example.

Streamlined sales tax certified service provider

If a streamlined sales tax certified service provider (CSP) is reporting retail sales tax on your behalf, you are still required to file your own Washington excise tax return to report your B&O tax.


Call 360-704-5900 or email