Washington’s Department of Revenue will begin requiring some out-of-state retailers to start collecting sales tax by Oct. 1, thanks to the U.S. Supreme Court’s June 21 decision in South Dakota v. Wayfair.
The decision allows states to require out-of-state businesses without a physical presence to collect and submit taxes. Previously, businesses without a physical presence in the state did not have to charge consumers sales tax.
Out-of-state businesses with gross sales of $100,000 or more or that have 200 or more sales in Washington during the current or previous year must begin collecting sales tax. Businesses that have annual gross sales between $10,000 and $100,000 and have fewer than 200 transactions in the state must still comply with the state’s Marketplace Fairness law, which took effect Jan. 1.
The Marketplace Fairness law requires out-of-state businesses without a physical presence to either collect sales tax or follow use tax notification and reporting requirements.
Additionally, Washington-based businesses that ship outside the state may now be required to collect sales taxes in each state in which they sell. Visit www.mtc.gov for more information.