New Requirements for Marketplace Facilitators in Washington

Jan 26th, 2018

The Washington Department of Revenue has released guidance explaining its new sales tax collection and use tax notice requirements for marketplace facilitators.

Effective January 1, 2018, marketplace facilitators with a physical presence in Washington or $10,000 or more in retail sales to Washington purchasers must (1) collect sales tax or (2) follow use tax notice and reporting requirements.

Washington provides a detailed definition, but, in general, marketplace facilitators are businesses that bring buyers and sellers together online. Marketplace facilitators that have a physical presence in Washington must collect tax on all sales to Washington purchasers. Marketplace facilitators that do not have a physical presence in Washington must either (1) elect to collect sales tax or (2) notify purchasers that use tax may be due. Obligation of Marketplace