Washington businesses selling to customers in other states

Registration and retail sales tax obligations in other states

The Supreme Court’s decision on Wayfair v. South Dakota represents a change in federal law.

Depending on the volume of your sales, you may be required to register in other states where you made sales, and collect/submit retail sales tax on your sales to customers in other states. The threshold may vary from state to state, so you will need to be aware of the requirements of each state where you have customers.

The Streamlined Sales Tax Governing Board (SSTGB) has created a remote seller hub on their website which answers a lot of questions about remote sales and changing laws. They have a list of all announcements that have been made about new tax registration and collection requirements, and will continue to update the list as more states make decisions. There is contact information for each state, including a link to their registration page.

Registering in other states

Streamlined Sales Tax Registration System

In order to make registration easier, you may use the SSTGB tax registration system to register for one or all 24 member states using one application.

Direct registration

You may also register separately with each state where you will be required to collect retail sales tax. The Federation of Tax Administrators provides links to each state's tax agency.

Registration and retail sales tax obligations in Washington

If your business is located in Washington and you make sales to customers in other states, your requirements do not change. Your business has physical presence, which means for Washington sales you must:

• Register your business.

• Collect and submit retail sales tax.

• Pay any required Business and Occupation (B&O) tax or other taxes.

You do not need to collect Washington sales tax on sales to customers in other states. For more information on your tax obligations, see new business information.

If you have sales through a marketplace facilitator, visit the marketplace seller page.

Questions

Call 360-704-5900 or email DORMarketplaceFairness@dor.wa.gov.