In light of the U.S. Supreme Court’s Wayfair ruling, Washington has followed suit in requiring remote sellers to collect sales or use tax on taxable sales into the state. Following an emergency rule enactment, the newly created economic nexus standard will go into effect October 1, 2018.
Remote sellers will be required to collect sales or use tax on taxable sales sourced to Washington if it exceeds $100,000 in gross retail sales or 200 retail transactions in the state in the current or prior calendar year. Due to the swiftness of the enactment, the Washington Department of Revenue amended rules on interstate sales and the collection of use tax to warn taxpayers that the rules may contain outdated guidance. Furthermore, the Department advises taxpayers to consult the department website for current information on tax collection responsibilities.
If you are a remote seller and conduct business in Washington, this may affect you. Remote sellers may register online by visiting the Washington Department of Revenue website and following the instructions provided. Alternatively, sellers may complete and mail in a Business License Application. A qualified tax attorney can assist with the execution of the application and potential questions or concerns that may arise in the process.
Jeanette Moffa is an attorney who concentrates on state and local taxes at Moffa, Sutton, & Donnini, P.A. She is also an adjunct professor and assistant editor to the American Bar Association’s The Sales and Use Tax Deskbook. She can be reached at 954-800-4138 or JeanetteMoffa@FloridaSalesTax.com.