Remote seller definition
You are a remote seller if you:
- Do not have a physical presence nexus in Washington.
- Make retail sales to Washington purchasers.
- Do not meet the definition of a marketplace facilitator.
Starting Jan. 1, 2020, remote 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.
For more information and thresholds for past periods, see our Out of state businesses reporting thresholds and nexus guide.
Note: Legal entity registration with the Secretary of the State is not required 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.
How to register
- Complete a Business License Application online.
- 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 360-705-6741.
Or, you can register through the Streamlined Sales Tax Registration System.
If you exceed the threshold and are required to collect sales tax, then you must file a tax return.
- Report your gross (marketplace and direct) Washington retail sales under Retailing B&O.
- Claim a No Local Activity deduction if you do not have B&O nexus in Washington.
- Report your gross Washington retail sales on the State Sales and Use page.
If a third party (e.g., marketplace facilitator) collects and submits retail sales tax on sales it manages for you, take a deduction for your facilitated sales.
- On the Deduction list, select Retail Sales Tax Collected by Facilitator, and enter your Washington sales through a marketplace.
- Paper return: In the Deduction section, under Retail Sales Tax mark Other, and write explanation Retail Sales Tax Collected by Facilitator.
On the Local Sales page, enter the sales by location.
- Direct sales (sales through your website, catalog, or in person): Enter each sale by location code.
- Sales through a marketplace: Do not enter these sales, they will automatically be deducted from your gross Washington sales.
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.
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.
Common sales tax exemptions
Common retail sales and use tax exemptions include:
- Prescription drugs.
Sales to Indians or Indian Tribes in their Indian country.
- See the Indian tax guide.
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.