Effective October 1, 2018, certain remote sellers conducting business in Washington must begin collecting sales or use tax on taxable retail sales.  Businesses that do not have a physical presence in the state will be required to collect sales or use tax if they exceed $100,000 in gross retail sales or have 200 or more retail transactions sourced to the state during the previous or current calendar year.  Recently, the Washington Department of Revenue explained how businesses should determine the date of a sale.

Specifically, the Department encourages businesses to use their normal accounting method when determining if a sale took place in a particular year to assist in deciding whether they meet the thresholds.  The sale can be based on the: (1) invoice date; (2) date the product is shipped; (3) date the product is delivered or received; (4) date the product is delivered or received; or (5) date you receive payment.

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 compete 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. For more information please call us at 888-966-8216.