You want to know what Washington State's Marketplace Fairness law (effective January 1, 2018) means for your business.
Washington State requires sales tax collection and remittance for online marketplaces that include marketplace facilitators, remote sellers, and referrers (such as Amazon or Etsy). See the Department of Revenue site for more information. If your company does not use any marketplace facilitators, no action is needed.
If your business uses an online marketplace, see the steps below for guidance on how to identify and report impacted transactions:
- Create a location code for each marketplace facilitator, allowing you to identify and report the related transactions for this entity.
- Assign the new location codes to transactions to report correctly.
- Use your Marketplace Facilitator Name for the Location Code. For example, Etsy
- Type Marketplace for the Location Description
- Use Marketplace for the type of Location
- For Category, select whether the seller or the marketplace remits tax on sales associated with this marketplace. Check the marketplace's help documentation or call their support line to figure out which option to choose here.
- Enter your primary business address in the Address Information fields