Washington Announces New Remote Seller Rules Post-Wayfair

Washington’s Department of Revenue has announced new rules for remote sellers and marketplace facilitators. Beginning October 1, 2018 remote sellers and marketplace facilitators making $100,000 worth of sales, or 200 retail transactions, in Washington will be required to collect and remit sales tax on those sales, consistent with the threshold applied by the South Dakota law in dispute in the Wayfair case.

Since January 2018, Washington has required remote sellers and marketplace facilitators to either collect and remit sales tax or issue use tax notices when their sales into the state exceed $10,000. The legislation imposing these requirements, however, gave the Department of Revenue the ability to create new rules should the Department determine that there had been a change to federal law. The Department has interpreted the Wayfair decision as such a change. Remote sellers and marketplace facilitators making between $10,000 and $100,000 worth of sales, and less than 200 transactions, continue to have the option to issue use tax notices in place of collecting and remitting sales tax. See the DOR's website for more information.

Author

Andrew Decker

Andrew Decker is a Junior Regulatory Counsel at Sovos Compliance. Working within Sovos’ Regulatory Analysis Department, Andrew’s work centers on indirect taxes (VAT, GST, Sales Tax), with a particular focus on jurisdictions in Europe and Asia. Andrew is a member of the Massachusetts Bar with a J.D from Northeastern University School of Law and a B.A. from Bates College.
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