Navigating Washington’s sales tax guidelines
When does a business or remote seller need to apply for a sales tax permit and collect and remit taxes on sales in the state of Washington? Every state determines its directives for when a business must collect and remit sales tax, and businesses must understand their tax obligations in Washington to ensure tax compliance. TaxJar’s sales tax guide provides businesses with everything they need to know about tax laws in Washington. Use the guide to learn more about economic and physical nexus and estimate potential sales tax liabilities with the sales tax calculator.
Do you need to collect sales tax in Washington?
Businesses must collect sales tax from buyers in Washington and remit payment to the state if the business (or seller) has either physical or economic nexus. Businesses with physical nexus have a tangible presence or activity in Washington, while businesses with economic nexus have met the state’s economic thresholds or total number of sales transactions.
Do you have physical nexus in Washington?
Washington considers a seller to have physical nexus under these conditions:
- Soliciting sales in this state through employees or other representatives
- Installing or assembling goods in this state, either by employees or other representatives
- Maintaining a stock of goods in this state
- Renting or leasing tangible personal property in Washington
- Providing services
- Constructing, installing, repairing, maintaining real property or tangible personal property in this state
- Making regular deliveries of goods into Washington using the taxpayer’s own vehicles
Do you have economic nexus in Washington?
Effective October 1, 2018, Washington considers vendors who make more than $100,000 in sales annually in the state to have economic nexus. These vendors are obligated to collect sales tax from buyers in the state. The Department of Revenue of Washington State provides additional context about economic nexus guidance for sellers.
What is the sales tax rate in Washington state?
The Washington state sales tax rate is 6.5%. Local sales tax rates may also apply.
Is what you’re selling taxable?
Services in Washington are generally not taxable. However, if the service you provide deals with construction services, you will likely have to deal with sales tax.
Tangible products are taxable in Washington, with a few exceptions, including certain groceries, prescription medicine, sales to nonresidents and newspapers.
Use tax is collected in Washington if sales tax has not been paid on the good or service. The Department of Revenue provides a detailed breakdown of use tax in Washington.
Is SaaS taxable in Washington?
SaaS is taxable in Washington since all software, delivered by whatever means, is considered taxable in the state.
How to get a sales tax permit in Washington
The state of Washington has a website specifically for attaining your business license and permits, including sales tax. Use the Business License Application to get started. Or visit TaxJar’s registration page to request TaxJar manage your Washington registration.
If you’d rather mail your application, download the Business License Application, include a $19 non-refundable fee, and mail the application and payment to:
State of Washington
Business Licensing Service
PO Box 9034
Olympia, WA 98507-9034
1-800-451-7985
Businesses must submit the following information to register for a sales tax permit in Washington:
- Purpose of application
- Ownership structure
- Business name
- Owners & spouses
- Business info including location, business activities, bank name, etc.
- Employment/Elective Coverage
Other business registration fees may apply.
Use the Streamlined Sales Tax™ Registration System (SSTRS)
| Washington is a Streamlined Sales Tax™ Member state. The Streamlined Sales Tax™ Registration System serves as a centralized location for businesses (and online sellers) to register for sales tax permits in member states. The system streamlines the sales tax permit process for businesses that have economic nexus in multiple states.
Use the SSTRS to apply for a sales tax permit in any member state. For additional guidance, businesses can contract with a Certified Service Provider™ (CSP™ ); the CSP serves as a sales tax concierge by providing tax assistance in any state in which the business is registered via the SSTRS. |
Collecting sales tax in Washington
The sales tax rate you collect in Washington depends on whether you are based in Washington or out-of-state.
How to collect sales tax in Washington
Washington is a destination-based sales tax state. Businesses that sell an item to a customer through an online store should collect sales tax at the tax rate where the product is delivered. (I.e., the buyer’s ship to address.) The state sales tax rate for Washington is 6.5%. Research local sales tax rates with TaxJar’s Sales Tax Calculator.
Should you collect sales tax on shipping charges in Washington?
According to Washington, businesses pay sales tax on shipping charges if the item you are shipping is taxable. If the item isn’t taxable, then the shipping isn’t taxable. Businesses shipping both taxable and nontaxable items should assess two charges for shipping, noting the taxable and nontaxable items.
When are Washington sales tax returns due?
When you file and pay Washington sales tax depends on your assigned filing frequency and your state’s due dates.
How often will you file sales tax returns in Washington?
States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.
In Washington, you will be required to file and remit sales tax either monthly, quarterly, or annually. Washington sales tax returns are generally always due the 25th or the final day of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.
Filing sales tax returns in Washington
When it’s s time to file sales tax in Washington, follow these simple steps:
- Calculate how much sales tax you owe
- File a sales tax return
- Make a payment
How to calculate how much sales tax you owe in Washington
Calculating how much sales tax you should remit to the state of Washington is easy with TaxJar’s Washington sales tax report.
Connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and we’ll calculate exactly how much sales tax you collected. All the information you need to file your Washington sales tax return will be waiting for you in TaxJar. All you have to do is login.
Washington sales tax filers are also required to file and pay Washington Business & Occupation (B&O) tax along with your Washington sales tax filing.
How to file and pay sales tax in Washington
You have three options for filing and paying your Washington sales tax:
- File online at the Washington Department of Revenue. You can remit your payment through their online system.
- File by mail – You can use various forms to file and pay through the mail.
- AutoFile – The easiest way to file sales tax in Washington is to let TaxJar AutoFile for you.
