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.