Sales Tax APIThe same engine Zamp customers use.Washington sales tax processes can seem like a maze of rules and deadlines.
To make it easy for you, we’ll explore how to calculate sales tax for every county and city in Washington. We’ll also answer essential questions like how to collect sales tax and whether you’re eligible to collect.
Additionally, we’ll introduce you to a reliable solution that’ll ensure sales tax compliance throughout the entire process.
Collecting Washington Sales Tax from Customers
Here are a few questions you may have about Washington state sales tax collection.
Do I Have to Collect Washington Sales Tax from Customers?
Retailers who meet these two requirements are required to collect sales tax in Washington:
- You have a sales tax nexus in Washington.
- You sell taxable products or services in Washington.
What Creates a Sales Tax Nexus in Washington?
In Washington, any retailer who makes a taxable sale and has a nexus must collect sales tax.
Some factors that create nexus in Washington include:
- Economic Nexus: Businesses with taxable sales of more than $100,000 in the past 12 months.
- Physical Location: Businesses with a store, office, warehouse, or other place of business. Distributing taxable items using mediums other than mail or common carriers also creates a nexus.
- Employee Location: Businesses with employees in the state.
- Events: Businesses that participate in more than one trade convention per year must register for sales tax. However, businesses participating in trade shows should apply for a sales tax permit.
Learn more about the sales tax nexus and when you’re required to collect sales tax.
Do I Have to Collect Sales Tax from Washington Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?
No.
Washington has a marketplace facilitator law. This means marketplaces like Walmart or Amazon are required to collect sales tax on behalf of third-party sellers on their platforms.
But if you have a sales tax nexus in Washington, you still need to collect sales tax on your other non-marketplace Washington sales.
Taxable Products in Washington
The Washington state imposes a sales tax on most tangible personal property. However, some necessities, such as food, clothing, and groceries, are not taxable.
Here’s a detailed run-down of the items taxed in Washington.
Are Groceries Taxable in Washington?
No. Grocery items are non-taxable in Washington at the state and local levels.
Is Clothing Taxable in Washington?
Yes, clothing is taxable in Washington.
Are Digital Products Taxable in Washington?
Yes, digital products are taxable in Washington.
Is Software-as-a-Service (SaaS) Taxable in Washington?
Yes. SaaS is taxable in Washington.
Are Services Taxable in Washington?
Yes, some services are taxable in Washington. These include:
- Custom construction
- Certain personal services, such as:
- Tanning
- Use of athletic and fitness facilities
- Recreational services
- Tattooing
- Extended warranties
- Renting equipment with operators
- Repairs to real or personal property
- Lawn mowing, tree and shrub pruning, and
- Trimming
- Escrow services
Tax-Exempt Items
Some items that enjoy sales tax exemption in Washington are:
- Farm products, such as horticultural services, feed, seed, and poultry.
- Producer goods, like manufacturing machinery used for production, semiconductor materials, and computers.
- Health-related purchases, like prescription drugs, medical devices, and blood banks.
But to collect sales tax on these items, you need a seller’s tax permit. Let’s explore how you can get one.
How to Register for a Washington Seller’s Permit
You can register for a Washington seller’s permit online at the Washington Department of Revenue.
Learn how to register for a seller’s permit in every US state.
Do I Need a Washington Sales Tax License if I’m Only a Wholesaler?
Yes.
You need a Washington sales tax permit even if you are only a wholesaler.
Do I Need a Washington Seller’s Permit if I Only Sell Temporarily in the State?
Yes, but if you meet certain requirements, you only need a Temporary Registration Certificate.
The criteria for a Washington Temporary Registration Certificate are:
- You sell at no more than two (2) events per year
- Your event lasts not longer than one month
- You are required to obtain a Temporary Registration Certificate for each event.
Read more about sales tax on attending, exhibiting at, and selling at trade shows in Washington.
How to Collect Sales Tax in Washington
Washington is a destination-based sales tax sourcing state.
This means that when you make a taxable sale to a customer in Washington, you should charge the sales tax rate at the buyer’s ship-to address.
Find out more about sales tax on shipping in every US state.
How to File and Pay Sales Tax in Washington
There are multiple ways to file and pay sales tax in Washington:
- File and pay online: Pay through Washington MyDOR. All Washington monthly and quarterly sales tax filers are required to file and pay online.
- File and pay by mail: Businesses with waivers should file via mail. Get your return forms at the Washington Department of Revenue website.
- Let Zamp handle your Washington sales tax filing and remittance so you never have to look at a sales tax return again!
Explore how you can file and pay sales tax in other US states.
