Washington Taxability Matrix: Tax Administration Practices
v
v2022.0
Publish Date: August 01, 2022 at 1:46:52 PM
Effective Date:
August 01, 2022
Completed by:
Matthew Largent
E-mail Address:
MatthewL@dor.wa.gov
Phone number:
360-534-1590
Date Revised:
August 01, 2022
Changes were made to the following areas of this document (indicated by a "✓"):
Taxability Treatment
Definition Treatment
Statute/Rule Cite Reference
✓
Comments
✓
Date Revised
Reference Number of changed items (may include a brief description of the change):
Credits 2.7 Added clarification to comment; Post Transactions 5.1 and 5.5c updated comment to current title of referenced website
Each Tax Administration Practice is in the Library of Tax Administration Practices in the Streamlined Sales and Use Tax Agreement (SSUTA) as amended through December 21, 2021. See Appendix E of the SSUTA for additional explanations and examples related to the Tax Administration Practices".
"Tax Administration Practices" indicates which administrative practices the state follows and provides an explanation of the state's practice if it does not follow a listed practice.
To the extent possible under each state's laws, sellers and CSPs are relieved from tax liability to the member state and its local jurisdictions for having charged and collected the incorrect amount of sales and use tax resulting from the seller or certified service provider relying on erroneous data provided by the member state relative to the tax administration practices.
To the extent possible under each state's laws, sellers and CSPs are also relieved from tax liability to the member state and its local jurisdictions for having charged and collected the incorrect amount of sales and use tax until the first day of the calendar month that is at least 30 days after notice of a change to the state's "Taxability Matrix: Tax Administration Practice" is submitted to the governing board, provided the seller or CSP relied on the prior version of the Taxability Matrix.
As of June 2021 the Taxability Matrix was separated into two documents: Taxability Matrix: Library of Definitions (previously Section 1) and Taxability Matrix: Tax Administration Practices (previously Section 2).
Tax Administration Practices
Disclosed Practice 1 - Tax Administration Practices on Vouchers from Appendix E of the SSUTA
Does Your State Follow this Practice?
If You Answered No, Describe the Difference Between the Practice as Adopted by the Governing Board and Your state's Treatment. Add Additional Comments if Desired.
Reference Number
Disclosed Practice 1 - Vouchers
Statute/Rule Cite
Comment
Voucher Definition
As used herein, a voucher is an instrument that is:
a. issued to a purchaser for an amount that is less than the face value and both the face value and amount paid by the purchaser are noted on the voucher;
b. redeemable for personal property or services in a single visit only at the seller's business;
c. redeemable either for a specific product or for a certain dollar amount towards the purchase price of any product sold by the seller;
d. issued, marketed, or distributed by a third party pursuant to a specific agreement with the seller, and the seller determines the price at which the voucher is to be issued and allows redemption of the specific voucher for personal property or services ("third party agreement");
e. not a digital code as defined by the Agreement or its Rules;
f. not a ticket for an admission to a specific performance or event on a specific date and time;
g. not a gift card or gift certificate nor is it convertible, in whole or in part, to gift cards, gift certificates or cash;
h. not usable in combination with other promotions or coupons offered by the seller; and
i. not a prepaid calling service or a prepaid wireless calling service.
Vouchers may be provided to purchasers in the form of an electronic instrument that is scanned by the seller from the purchaser's electronic device.
Reference Number
Disclosed Practice 1 - Vouchers
Yes
No
Statute/Rule Cite
Comment
Vouchers 1.1
The member state administers the difference between the value of a voucher allowed by the seller and the amount the purchaser paid for the voucher as a discount that is not included in the sales price (i.e., same treatment as a seller's in-store coupon), provided the seller is not reimbursed by a third party, in money or otherwise, for some or all of that difference.
X
RCW 82.08.010(1) and the Department's Special Notice "Discount Vouchers" (August 23, 2012) at www.dor.wa.gov
Note: If the seller does not know at the time of sale the amount the customer paid to obtain a payment instrument and thus does not know whether the instrument is a voucher, the seller will treat the consideration paid by the customer as equal to the face value of the instrument.
Vouchers 1.2
The member state provides that when the discount on a voucher will be fully reimbursed by a third party the seller is to use the face value of the voucher (i.e., same as the treatment of a manufacturer's coupon) and not the price paid by the purchaser as the measure (sales price) that is subject to tax.
X
RCW 82.08.010(1)
Vouchers 1.3
The member state provides that costs and expenses of the seller are not deductible from the sales price and are included in the measure (sales price) that is subject to tax. Further, reductions in the amount of consideration received by the seller from the third party that issued, marketed, or distributed the vouchers, such as advertising or marketing expenses, are costs or expenses of the seller.
X
RCW 82.08.010(1) and the Department's Special Notice "Discount Vouchers" (August 23, 2012) at www.dor.wa.gov
Disclosed Practice 2 - Tax Administration Practices on Credits from Appendix E of the SSUTA
Does Your State Follow this Practice?
For Sections With Only No Responses, Describe Your state's Tax Treatment. Add Additional Comments if Desired.
Reference Number
Disclosed Practice 2 - Credits
Yes
No
Statute/Rule Cite
Comment
Definition
"Tax Paid" means the tax that was (1) paid and (2) previously due from either the seller or the purchaser when the sale of that product is taxable in that state and it was properly sourced based on that state's sourcing rules. "Tax paid" includes tax that was (1) paid and (2) previously due from the purchaser (or seller, if applicable) because the purchaser moved the product to a different jurisdiction. "Tax paid" does not include the portion of tax paid that is currently eligible for a credit or refund or tax paid that is eligible for refund under a tax-incentive program or agreement.
Reference Number
2.1 Credit Against Use Tax
Yes
No
Statute/Rule Cite
Comment
Credits 2.1
The State imposing tax on the purchaser provides credit for "sales or use taxes paid" on a product against the state's use tax.
X
RCW 82.12.035
The credit is provided to the extent of the amount of "tax paid" to the other jurisdiction.
Reference Number
2.2 Credit Against Sales Tax
Yes
No
Statute/Rule Cite
Comment
Credits 2.2
The State imposing tax provides credit for the "sales or use taxes paid" on a product against the state's sales tax.
X
There is no statute authorizing a credit against Washington's sales tax.
Reference Number
2.3 Reciprocity
Yes
No
Statute/Rule Cite
Comment
Credits 2.3.a
The credit the State provides in 2.1 and 2.2 applies regardless of whether another state provides a reciprocal credit.
X
RCW 82.12.035
Credits 2.3.b.
The credit the State provides in 2.1 and 2.2 only applies when the other state where the tax was paid provides a reciprocal credit.
X
There is no statute requiring reciprocity
Reference Number
2.4 State and Local Sales and Use "Tax Paid"
Yes
No
Statute/Rule Cite
Comment
Credits 2.4.a.
The credit provided for in 2.1 and 2.2 is for the combined amount of state and local "tax paid" to another state or local jurisdiction against both the state and local taxes due to the State.
X
RCW 82.12.035
Credits 2.4.b.
The credit provided for in 2.1 and 2.2 is for only the state "tax paid" to another state against the taxes due to the State (i.e., no credit for local tax against state tax). If the State has local sales or use taxes, it only provides credit for state tax against state tax and local tax against local tax.
X
There is no statute that limits the use tax credit.
Reference Number
2.5 Credit for "Similar Tax" Paid to Another Jurisdiction
Yes
No
Statute/Rule Cite
Comment
Credits 2.5
The credit provided for in 2.1 and 2.2 includes "similar taxes" that were (1) paid and (2) previously due to another state or local jurisdiction against the sales or use taxes due. If applicable, list below all known similar or like taxes the State provides credit for even if such tax does not meet the definition of a "similar tax."
X
"- Washington is unaware of any similar taxes presently
"- Washington statute specifically allows credit only for legally imposed and paid "retail sales or use tax"
"- Washington has no provision in law allowing credit for a "similar tax"
"- If a "similar tax" qualifies as a retail sales or use tax, then Washington would provide credit for that tax
"- If taxpayers have questions about a particular "similar tax," they may seek a letter ruling from the Washington Department of Revenue (the "Department') on the matter.
Credits 2.5
2.6. Credit Against "Similar Tax" Imposed by the State
Yes
No
Statute/Rule Cite
Comment
Credits 2.6
The credit provided for in 2.1 and 2.2 includes "sales or use taxes paid" to another state or local jurisdiction against "similar taxes" due. If applicable, list below "similar taxes" imposed that the State provides credits against.
X
"¢ The Department is unaware of any "similar tax" against which a credit for retail sales or use tax paid to other state/local or foreign jurisdictions is allowed. "¢ If taxpayers have questions about a particular "similar tax," they may seek a letter ruling from the Department on the matter
Credits 2.6
2.7 Sourcing when Receipt Location is Known
Yes
No
Statute/Rule Cite
Comment
Credits 2.7
The credit provided for in 2.1 and 2.2 applies when the other state's "sales or use taxes" were (1) paid and (2) previously due based on: i) that other state's sourcing rules, or ii) the purchaser's location of use of a product subsequent to the initial sale.
X
RCW 82.12.035
-This assumes that the credit is for "tax paid," which does not include the portion of tax paid that is currently eligible for a credit or refund or tax paid that is eligible for refund under a tax-incentive program or agreement.
-Washington provides a use tax credit where the present user or his or her bailor or donor has paid a legally imposed retail sales or use tax and the incidence of first use or purchase was in the other state.
2.8 Sourcing when Receipt Location is Unknown
Yes
No
Statute/Rule Cite
Comment
Credits 2.8
Except as provided in Credits 2.13, the credit provided for in 2.1 and 2.2 applies when the seller sources the initial sale pursuant to the SSUTA Sections 310.A.3, 310.A.4, or 310.A.5, because the location where the product was received by the purchaser was unknown to the seller.
X
RCW 82.12.035
-Washington generally provides a use tax credit for sales legally sourced to another state pursuant to SSUTA §§ 310.A.3, 310.A.4, and 310.A.5.
-This assumes that the credit is for "tax paid," which does not include the portion of tax paid that is currently eligible for a credit or refund or tax paid that is eligible for refund under a tax-incentive program or agreement.
- NOTE: Washington generally assumes the seller's sourcing to be correct, except where clearly demonstrated otherwise; so when it is clear that the taxable legal incidence is not in the other state, no credit would be allowed.
2.9 Characterization of Sale
Yes
No
Statute/Rule Cite
Comment
Credits 2.9
The credit provided for in 2.1 and 2.2 applies regardless of the other state's characterization of the product as tangible personal property, a service, digital good, or product delivered electronically.
X
RCW 82.12.035
2.10 Sales Price Components
Yes
No
Statute/Rule Cite
Comment
Credits 2.10.a.
2.10.a. Full Credit Allowed - The credit provided for in 2.1 and 2.2 applies to all components of the SSUTA "sales price" definition, whether taxable or nontaxable in the State.
X
RCW 82.12.035;
RCW 82.08.010
Credits 2.10.b.
2.10.b. Partial Credit Allowed - When taxable and non-taxable charges are itemized on the invoice, the credit provided for in 2.1 and 2.2 is only for the "tax paid" on the taxable components of the sales price in the State.
X
RCW 82.12.035;
RCW 82.08.010
2.11 Transactions with Taxable and Exempt Products
Yes
No
Statute/Rule Cite
Comment
Credits 2.11.a.
2.11.a. Full Credit Allowed - The credit provided for in 2.1 and 2.2 applies to the full amount of "tax paid" on a transaction consisting of taxable and exempt products.
X
RCW 82.12.035
"¢ In applying a credit to use tax for products that are "distinct and identifiable," as defined in RCW 82.08.190, Washington will only credit taxes paid on the distinct and identifiable product subject to use tax. "¢ NOTE: Washington would fully credit the transaction described in Example G of the "Best Practices - Credits Best Practice 4-28-2014" (AM14004A01), because it is a sale of a single product or two taxable products.
Credits 2.11.b.
2.11.b. Partial Credit Allowed - When taxable and non-taxable products are itemized on the invoice the credit provided for in 2.1 and 2.2 is only for the "tax paid" on the taxable products of a transaction in the State.
X
RCW 82.12.035
NOTE: Washington would fully credit all components of a single distinct and identifiable product. See Disclosed Practice 2.10 Sales Price Components above.
2.12 Audit Sampling
Yes
No
Statute/Rule Cite
Comment
Credits 2.12
The credit provided for in 2.1 and 2.2 applies when the sale or purchase of the product was part of the population sampled pursuant to an audit sampling method.
X
"¢ Washington may, but is not required to, give credit against use tax for another jurisdiction's sales and use taxes paid and legally imposed as the result of the statistical sample conducted by the other jurisdiction. "¢ The Department retains authority to approve sampling methods "¢ Non-statistical samples are less likely to be allowed
2.13 Direct Mail
Yes
No
Statute/Rule Cite
Comment
Credits 2.13
The credit provided for in 2.1 and 2.2 applies when the seller sources the sale of Advertising and Promotional Direct Mail pursuant to Section 313.A.4.
X
RCW 82.12.035; RCW 82.32.730(5)(a)(iv)
This response is similar to Disclosed Practice 2.8 Sourcing when Receipt Location is Unknown. That is, - Washington generally would credit sales legally sourced to another state pursuant to SSUTA 310.A.5. - This assumes that the credit is for "tax paid," which does not include the portion of tax paid that is currently eligible for a credit or refund or tax paid that is eligible for refund under a tax-incentive program or agreement. - NOTE: Washington generally assumes the seller's sourcing to be correct, except where clearly demonstrated otherwise; so when it is clear that the taxable legal incidence is not in the other state, no credit would be allowed.
2.14 Accelerated Payments on Lease/Rentals
Yes
No
Statute/Rule Cite
Comment
Credits 2.14
The credit provided for in 2.1 and 2.2 includes the "tax paid" to another state or local jurisdiction on a lease/rental transaction based on the sum of the lease payments ("accelerated basis"), against the "sales or use taxes" due on the balance of the lease/rental payments.
X
RCW 82.12.035
However, it is important to note: "¢ Washington provides no credit against sales tax for sales tax paid to another state "¢ If the lease is periodic, then for those periodic payments sourced to Washington, sales tax would be due with no credit for sales tax paid to another state with respect to payments sourced to Washington
2.15 Inception-Deferred Collection on Lease/Rentals
Yes
No
Statute/Rule Cite
Comment
Credits 2.15
The credit provided for in 2.1 and 2.2 includes the "tax paid" to another state or local jurisdiction on a lease/rental transaction based on a deferred collection/remittance method against the "sales or use taxes" due on the balance of the lease/rental payments.
X
RCW 82.12.035
However, it is important to note: "¢ Washington provides no credit against sales tax for sales tax paid to another state "¢ If the lease is periodic, then for those periodic payments sourced to Washington, sales tax would be due with no credit for sales tax paid with respect to payments sourced to Washington
2.16 Lessor Acquisition
Yes
No
Statute/Rule Cite
Comment
Credits 2.16
The credit provided for in 2.1 and 2.2 includes the "tax paid" by the lessor to another state or local jurisdiction on the acquisition of the product against the "sales or use taxes" due on the balance of the lease/rental payments provided the tax reimbursement is documented and disclosed to the lessee.
X
RCW 82.12.035
Disclosed Practice 3 - Tax Administration Practices on Liability Relief from Appendix E of the SSUTA
(Note: These tax administration practices address whether a member state provides liability relief although the state is only required to provide relief "to the extent possible," as specified in sections 328(C) and (D) of the Agreement.)
Does Your State Follow this Practice?
If You Answered No, Describe the Difference Between the Practice as Adopted by the Governing Board and Your state's Treatment. Add Additional Comments if Desired.
Reference Number
Disclosed Practice 3 – Liability Relief
Yes
No
Statute/Rule Cite
Comment
Disclosed Practice 3.1 - Liability relief for erroneous information in the tax administration practices section of the taxability matrix
If you answer "Yes" to 3.1, you do not need to complete 3.1.a, b, and c below.
If you answer "No" to 3.1, please complete 3.1.a, b, and c below.
Liability Relief 3.1
The State provides sellers and CSPs with liability relief for tax, interest and penalties if the sellers and CSPs charged and collected the incorrect tax due to erroneous information in the tax administration practices section of the taxability matrix.
X
RCW 82.32.740
Effective July 1, 2015, SSB 5275 (Ch. 86, Laws of 2015) amended RCW 82.32.740 so that if the Washington taxability matrix is amended, sellers and certified service providers are relieved from liability to the state and local jurisdictions to the extent that the seller/CSP relied on the immediately preceding version of the state's taxability matrix.
Liability Relief 3.1.a.
Liability Relief for Tax
Liability Relief 3.1.b.
Liability Relief for Interest
Liability Relief 3.1.c.
Liability Relief for Penalties
Disclosed Practice 3.2 - Extended liability relief for changes to the tax administration practices section of the taxability matrix
If you answer "Yes" to 3.2, you do not need to complete 3.2.a, b, and c below.
If you answer "No" to 3.2, please complete 3.2.a, b, and c below.
Liability Relief 3.2
When the State makes a change to its tax administration practice section of the taxability matrix, the State provides sellers and CSPs with liability relief for the tax, interest and penalties for having charged and collected the incorrect tax until the first day of the calendar month that is at least 30 days after notice of the change to the state's tax administration practices section of the taxability matrix is submitted to the governing board, provided the seller or CSP relied on the prior version of the taxability matrix.
X
RCW 82.32.740
Effective July 1, 2015, SSB 5275 (Ch. 86, Laws of 2015) amended RCW 82.32.740 so that if the Washington taxability matrix is amended, sellers and certified service providers are relieved from liability to the state and to local jurisdictions to the extent that the seller or certified service provider relied on the immediately preceding version of the state's taxability matrix. This relief is available until the first day of the calendar month that is at least thirty days after the department submits notice of a change to the state's taxability matrix to the streamlined sales tax governing board.
Liability Relief 3.2.a.
Liability Relief for Tax
Liability Relief 3.2.b.
Liability Relief for Interest
Liability Relief 3.2.c.
Liability Relief for Penalties
Disclosed Practice 3 .3 Extended liability relief for changes to the library of definitions section of the taxability matrix
If you answer "Yes" to 3.3, you do not need to complete 3.3.a, b, and c below.
If you answer "No" to 3.3, please complete 3.3.a, b, and c below.
Liability Relief 3.3
When the State makes a change to the library of definitions section of its taxability matrix, the State provides sellers and CSPs with liability relief for the tax, interest and penalties for having charged and collected the incorrect tax until the first day of the calendar month that is at least 30 days after notice of the change to the member state's library of definitions section of the taxability matrix is submitted to the governing board, provided the seller or CSP relied on the prior version of the taxability matrix.
X
RCW 82.32.740
Effective July 1, 2015, SSB 5275 (Ch. 86, Laws of 2015) amended RCW 82.32.740 so that if the Washington taxability matrix is amended, sellers and certified service providers are relieved from liability to the state and to local jurisdictions to the extent that the seller or certified service provider relied on the immediately preceding version of the state's taxability matrix. This relief is available until the first day of the calendar month that is at least thirty days after the department submits notice of a change to the state's taxability matrix to the streamlined sales tax governing board.
Liability Relief 3.3.a.
Liability Relief for Tax
Liability Relief 3.3.b.
Liability Relief for Interest
Liability Relief 3.3.c.
Liability Relief for Penalties
Disclosed Practice 4 - Tax Administration Practices on Acceptance of Limited Power-of-Attorney/Agent Authorization (Limited POA/AA) Form from Appendix E of the SSUTA
Does Your State Follow this Practice?
If You Answered No, Describe the Difference Between the Practice as Adopted by the Governing Board and Your state's Treatment. Add Additional Comments if Desired.
Reference Number
Disclosed Practice 4 – Acceptance of Limited Power-of-Attorney/Agent Authorization Form – Form F0023
Disclosed Practice 4.1
Acceptance of Form F0023 From CSPs
Yes
No
Statute/Rule Cite
Comment
Limited POA/AA 4.1
The member state will accept a signed copy of the Limited Power of Attorney/Agent Authorization form posted to the governing Board's website, as sufficient authority for the state to disclose to the CSP any confidential information of the seller necessary to allow the CSP to fulfill its obligations under its contract with the governing board and to fulfill its responsibilities to the seller under Section 501 of the Agreement.
X
Disclosed Practice 4.2
Acceptance of Form F0023 From Persons Other Than CSPs
Yes
No
Statute/Rule Cite
Comment
Limited POA/AA 4.2
The member state will accept a signed copy of the Limited Power of Attorney/Agent Authorization form posted to the governing Board's website, as sufficient authority for the state to disclose to the seller's appointed agent, other than a CSP, any confidential information of the seller as authorized on the form to allow the agent to fulfill its obligations to the seller.
X
Disclosed Practice 5. Tax Administration Practices on Post Transaction Issues from Appendix E of the SSUTA
Does Your State Follow this Practice?
If You Answered No, Describe the Difference Between the Practice as Adopted by the Governing Board and Your state's Treatment. Add Additional Comments if Desired.
Reference Number
Disclosed Practice 5 – Post Transaction Issues
Unless indicated otherwise throughout Disclosed Practice 5:
· Use of the word "tax" means the sales or use tax paid by the customer to the seller which was timely remitted by the seller to the state;
· Use of the word "refund" includes a credit unless otherwise stated;
· Unless otherwise stated, the refund is being claimed within the state's statute of limitations;
· Unless otherwise stated, the seller has refunded the tax to the customer;
· The tax rates used in the examples are for illustrative purposes only and are presumed to be correct;
· The seller is not engaged in fraud or making intentional misrepresentations;
· The seller maintains proper books and records to substantiate taxes collected and remitted based on the applicable state's requirements;
· The disclosed practices do not apply to sales of motor vehicles;
· The disclosed practices relate to products voluntarily returned by the customer and accepted by the seller (e.g., does not include repossessed products) and;
· The disclosed practices only provide general guidance and assume there are no other unique circumstances that apply.
Disclosed Practice 5.1 - Refund Procedure Document
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.1
Does your state have written guidance on your website, or otherwise, that explains how sellers and/or customers can properly obtain a tax refund from your state? (If "yes", please provide a website link and/or indicate how a person can obtain guidance in the comment section.)
X
WAC 458-20-229
See also Washington State Department of Revenue's webpage on "Apply for a tax refund"
Disclosed Practice 5.2 - When does your state's statute of limitations begin for a seller to obtain a refund of tax paid for products returned by a customer?
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.2.a.
It begins on the due date of the tax return on which the tax was required to be reported by the seller to the state.
X
Post Transactions 5.2.b.
It begins on the date the tax on the sale was due by the seller to the state.
X
Post Transactions 5.2.c.
It begins on the date the tax was remitted to the state or the due date of the tax return, whichever is later.
X
RCW 82.32.060; WAC 458-20-229
Post Transactions 5.2.d.
It begins on the date the customer returns the product (such as a rescission of sale) to the seller and receives the refund from the seller.
X
Post Transactions 5.2.e.
Other - If the state's answers to 5.2.a. – 5.2.d. were all "no", check "yes" and explain when the statute of limitations for a sellers claim begins in the comments section.
Disclosed Practice 5.3 - How long is your state's statute of limitations time period for a seller to claim a tax refund on products returned by a customer?
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.3.a.
A three-year statute of limitations (that begins based on the state's response in 5.2) for a seller to make a refund request to the state.
X
Post Transactions 5.3.b.
A four-year statute of limitations (that begins based on the state's response in 5.2) for a seller to make a refund request to the state.
X
Post Transactions 5.3.c.
If the answers to both 5.3.a. and 5.3.b., were "no" please indicate "yes" and provide your state's time period for a seller to make a refund request to the state in the comments.
X
RCW 82.32.060; WAC 458-20-229
Except by waiver, no refund or credit may be made for taxes, penalties, or interest paid more than four years prior to the beginning of the calendar year in which the refund application is made or examination of records is completed
Disclosed Practice 5.4 - Documentation to Prove Refund of Tax to Customer
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.4
Will your state accept the seller's electronic sales receipts that identify the product purchased, the date purchased, the tax collected, the product returned, the date refunded and the tax refunded to the customer to prove that a customer paid tax?
X
Disclosed Practice 5.5 - How does a seller obtain a refund of tax refunded to their customer? (Credit on Current Tax Return, Subsequent Tax Return or Refund Claim)
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.5.a.
Does your state allow a seller to take a credit (or net) on its tax return to report the original sale if the product was returned prior to the seller filing that tax return? If this is required, note that in comments section.
X
WAC 458-20-278
If the tax refunded to the customer occurred in the same tax reporting period as the original sale, then the seller may get a credit for the refunded tax by taking a deduction for the refunded sale price from the gross sales amount for that reporting period
Post Transactions 5.5.b.
Subject to the state's statute of limitations, does your state allow a seller to take a credit (or net) during the reporting period when the product was returned if the product is returned in a different reporting period than the original sale? If this is required, note that in comments section.
X
Post Transactions 5.5.c.
Subject to the state's statute of limitations, does your state allow the seller to file an amended tax return and/or refund claim when the product is returned after the seller filed its tax return to the state to report the original sale? If this is required, note that in comments section.
X
See the DOR website for "Apply for a Tax Refund."
Disclosed Practice 5.6 - May the seller process the refund and additional charges in one transaction on a single invoice?
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.6.a.
Does your state allow the seller to obtain a refund from the state if the seller subtracts from the original sales price any charges imposed by the seller to make a return (understanding the tax must be collected on any taxable charges)? If your state has exceptions note those exceptions in the comments section.
X
A seller may obtain a refund if the seller refunds the sales price and tax to the customer for the return, and also charges the customer a restocking fee for the return. WAC 458-20-278
Post Transactions 5.6.b.
If the answer to 5.6.a. was "no," does your state allow the seller to obtain a refund from the state if it provides a full refund, including the tax, but subsequently imposes any service charges (and imposing any applicable tax) to the customer as a separate transaction on a separate invoice?
Disclosed Practice 5.7 - Taxability of Return Fees
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.7.a.
Does your state impose tax on restocking fees or return fees that are not directly associated with the use of a returned product?
X
WAC 458-20-278
Washington does not impose retail sales tax on restocking fee
Post Transactions 5.7.b.
Does your state impose a sales tax on a charge for the use (e.g. wear and tear) of a product?
X
WAC 458-20-278
Disclosed Practice 5.8 - Cash/Credit Refund versus Store Credit
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.8
Does your state treat the refund in the form of store credit the same as a cash refund for returned products?
X
Disclosed Practice 5.9 - Simultaneous Return and Sale
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.9.a.
Does your state allow the seller to only collect and remit the additional tax on the price difference of a returned product when the replacement product costs more? If no, explain in the comments section.
X
WAC 458-20-278
This answer presumes that the receipt/invoice is itemized, showing the return of one product for its full sales price and the purchase of another product for a different price
Post Transactions 5.9.b.
Does your state allow the seller to obtain a refund from the state for the price difference of a returned product when the replacement product costs less? If no, explain in the comments.
X
WAC 458-20-278
This answer presumes that the receipt/invoice is itemized, showing the return of one product for its full sales price and the purchase of another product for a different price
Disclosed Practice 5.10 - Refund Pending State Approval
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.10.a.
Will your state refund or credit a seller for tax erroneously collected and remitted to the state prior to the seller refunding the customer the tax if the seller does not have a written agreement to refund the tax to the customer?
X
WAC 458-20-229
Post Transactions 5.10.b.
If you answered "no" to disclosed practice 5.10.a., if the seller has a written agreement that it will refund the tax to the customer if the state approves the refund, will your state refund or credit a seller for tax erroneously collected and remitted to the state prior to the seller refunding the customer the tax?
X
WAC 458-20-229
Post Transactions 5.10.c.
Does your state require the seller to refund the tax to the customer prior to obtaining a refund from the state?
X
WAC 458-20-229
Disclosed Practice 5.11 - Seller Refund When Customer Did Not Pay Tax
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.11
Can the seller, who remitted the tax to the state, obtain a refund of the tax paid to the state if the customer refuses to pay the tax because the customer correctly asserted the transaction was exempt under the state's laws?
X
This assumes that the seller has records to substantiate that the seller paid the tax and the customer did not pay the tax
Disclosed Practice 5.12 - Returned Product to Seller in Another State
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.12
The customer has the original sales receipt indicating your state's tax was charged. If the product is returned in another state, will your state allow the seller to claim the refund of the tax paid to your state?
X
This assumes that the return is for a full refund of the original sales price
Disclosed Practice 5.13 - Returned Product to Seller in Another Local Jurisdiction Within the Same State
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.13
The customer has the original sales receipt indicating the tax was charged for a local jurisdiction in your state. The product is returned in your state in a different local jurisdiction. Does your state require the seller to claim the refund of the tax paid to the original local jurisdiction?
X
This assumes the return is for a full refund of the original sales price
Disclosed Practice 5.14 - Returned Product with No Receipt
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.14
If a seller refunds tax to a customer, without a receipt, using the tax rate at the store where the return was made and the price of the returned product at the store at that time, will your state allow the seller to receive a refund or credit of this tax from the state? Note in the comments section any special documentation the seller needs to provide the state.
X
A seller would be able to claim a refund if the seller's books and records can adequately substantiate the returned product's original sales transaction
Disclosed Practice 5.15 - Customer Directly Filing for a Refund
Yes
No
Statute/Rule Cite
Comment
Post Transactions 5.15.a.
Does the state give customers the option to request a tax refund directly from the state (i.e., the customer is not required to make the request through the seller)? Note any special requirements that may apply, such as minimum dollar thresholds, in the comment section.
X
WAC 458-20-229
Post Transactions 5.15.b.
If the answer to disclosed practice 5.15.a. was "no," does the state allow a customer to obtain a tax refund from the state when the seller cannot be found or refuses to refund the tax to a customer? If "yes", provide details in the comment section.
X
WAC 458-20-229(4)(b)
Disclosed Practice 6. Tax Administration Practices on Determining the Earliest Possible Date to Register Without It Adversely Affecting a Voluntary Disclosure Agreement (VDA) from Appendix E of the SSUTA
Does Your State Follow this Practice?
If You Answered Yes, Describe the Adverse Affect on the VDA. Add Additional Comments if Desired.
Reference Number
Disclosed Practice 6.1 - For each of the scenarios below, indicate whether registration to collect and remit sales and use taxes with your state adversely affects a VDA.
Yes
No
Statute/Rule Cite
Comment
Voluntary Disclosure Agreement 6.1.a.
A seller's registration prior to the seller (or its representative) submitting the state's voluntary disclosure agreement (VDA) application will adversely affect the seller's VDA with the state.
X
If a seller registers immediately prior to or contemporaneously with submitting the VDA application, the seller's registration will generally not adversely affect the VDA application. The Department will review the facts and circumstances of each specific scenario in determining eligibility.
Voluntary Disclosure Agreement 6.1.b.
A seller's registration after the seller (or its representative) submits the state's voluntary disclosure agreement (VDA) application, but before either the seller or the state signs the actual VDA will adversely affect the VDA with the state.
X
Voluntary Disclosure Agreement 6.1.c.
A seller's registration after the state signs the actual voluntary disclosure agreement (VDA) but before the seller signs the VDA will adversely affect the VDA.
X
Disclosed Practice 7. Tax Administration Practices on Medical Products Identified in SSTGB Rules and Procedures Appendix L as "Not Classified by SSTGB" from Appendix E of the SSUTA. States may classify one or more of the "Not Defined" products listed in Appendix L under one of the SSUTA definitions or a state-specific definition, other than "tangible personal property."
Does Your State Follow this Practice?
Add Additional Comments if Desired
Reference Number
Disclosed Practice 7 - Classification of Medical Products in Appendix L Identified as "Not Classified by SSTGB"
Yes
No
Statute/Rule Cite
Comment
Medical Products 7.1
Does the state classify any of the items listed below in Medical Products Disclosed Practice 7.2 as clothing, drugs, durable medical equipment, mobility enhancing equipment, over-the-counter drugs, prosthetic devices, or under a different state-specific definition (other than tangible personal property)? If yes, see Medical Products Disclosed Practice 7.2 for the classification. If no, Medical Products Disclosed Practice 7.2 does not need to be completed.
X
See comments below for Medical Products 7.2.ar, 7.2.as, and 7.2.at identifying state specific definitions for the limited purposes of exemption provisions.
Medical Products 7.2
Answer No if the item is not classified under any of the terms listed in Medical Products Disclosed Practice 7.1 or a state-specific defined term (other than tangible personal property).
Answer Yes if the item is classified under one of those terms, provide the appropriate statute/rule city and indicate in the "Comment" column the defined term under which the item is classified.
These tax administration practices identify how each state classifies the products identified as "Not Classified by SSTGB" in Appendix L, but do not indicate the taxability of those products.
Product
SSUTA Defined Term
State Specific Defined Term
Statute/Rule Cite
Comment
(if applicable, indicate defined term under which the item is classified)
Medical Products 7.2.a
Air purifier
Medical Products 7.2.b
Bed pads - Disposable - for incontinent patients
(Disposable pad placed on beds to keep sheets dry and wick moisture away from the patient. Used for incontinent patients.)
Medical Products 7.2.c
Blankets - Other than baby receiving blankets
Medical Products 7.2.d
Breast pumps (See Reference #s 52500-52512)
Medical Products 7.2.e
Closed caption devices
Medical Products 7.2.f
Cold packs and Hot packs (reusable)
Medical Products 7.2.g
Collection bags - Body fluid collection
(For collection and sending to lab for testing)
Medical Products 7.2.h
Denture adhesive
Medical Products 7.2.i
Dialysis Bags - Peritoneal Dialysis Drain
Medical Products 7.2.j
Dialyzers - Single Use
(A dialyzer is an artificial kidney designed to provide controllable transfer of solutes and water across a semi permeable membrane separating flowing blood and dialysate streams. The transfer processes are diffusion (dialysis) and convection (ultrafiltration). There are three basic dialyzer designs: coil, parallel plate, and hollow fiber configurations. Filter that is incorporated in machine.)
Medical Products 7.2.k
Dressings - Compression - Non Medicated
(Ace Bandages)
Medical Products 7.2.l
Dressings - Elastic - Non Medicated
(Non-Ace bandages to hold dressings)
Medical Products 7.2.m
Dressings - Gauze Wraps
(Tube gauze, Gauze Wraps)
Medical Products 7.2.n
Dressings - General
(Pads, sponges, tapes and adherents, elastic, compression, gauze)
Medical Products 7.2.o
Dressings - Non-Medicated
(Dressings containing a substance which is neither a RX or OTC drug)
Medical Products 7.2.p
Dressings - Wound Care - Skin Barrier Products
(Sprays, cream)
Medical Products 7.2.q
Eating utensils - Adjustable
Medical Products 7.2.r
ECG Monitor - Implanted
Medical Products 7.2.s
Fever thermometers - Disposable/SPU
Medical Products 7.2.t
Gases - Non-Medical Grade
Medical Products 7.2.u
Gases - Tanks for
(Empty - Tanks only)
Medical Products 7.2.v
Glucose for Insulin Reactions
(Tablets, liquid)
Medical Products 7.2.w
Infuser Bags
(Pressure Infuser bags - used to administer intravenous fluids under pressure at any angle to patients in pre-hospital or emergency room settings - Disposable)
(An atomizer that gives controlled delivery of topical anesthetics and other drugs. Used primarily for nasal or oral drug delivery. This version of atomizers is disposable.)
(Interlink System -- Separate Needle-less infusion device from IV sets - Stand alone items)
Medical Products 7.2.ao
Needles & Syringes - Syringes
Medical Products 7.2.ap
Needles & Syringes - Syringes - Insulin
Medical Products 7.2.aq
Needles & Syringes - Syringes - Not Inject/Drain
(Irrigation (Toomey), oral and ear)
Medical Products 7.2.ar
Ostomy - Barriers
(Barrier prep wipes, barrier powder)
RCW 82.08.804 - for this provision, "ostomic items" means disposable medical supplies used by colostomy, ileostomy, and urostomy patients, and includes bags, belts to hold up bags, tapes, tubes, adhesives, deodorants, soaps, jellies, creams, germicides, and other like supplies. "Ostomic items" does not include undergarments, pads and shields to protect undergarments, sponges, or rubber sheets.
(Wax used in paraffin baths. Paraffin heat therapy provides moist heat to warm joints tissue and skin. Used in the treatment of arthritis and joint injuries. )
Medical Products 7.2.av
Physical Therapy -Equipment & Tools
(Exerbands, weights, bikes, treadmills, rowers, parallel bars from #212)
Medical Products 7.2.aw
Resuscitators - Disposable
Medical Products 7.2.ax
Safety equipment
(Goggles, shields)
Medical Products 7.2.ay
Seat Cushions - Comfort
(General use cushions that do not primarily and customarily serve a medical purpose.)
Medical Products 7.2.az
Sitz bath
Medical Products 7.2.ba
Skin closures
(These are called butterfly bandages, steri-strips, cover strips, or suture strips and are variations of sterile adhesive skin closures designed to hold the edges of a skin wound together.)
Medical Products 7.2.bb
Spas, hot or cold
(Spas which are available for sale to the general public and not specifically manufactured for medical purposes.)
Medical Products 7.2.bc
Staple Remover - Wound Closure
(Disposable)
Medical Products 7.2.bd
Stapler - Empty - one Use Only
Medical Products 7.2.be
Sterilizers - Chemical
Medical Products 7.2.bf
Suction Catheter
(This catheter is used for the removal of respiratory tract secretions. The catheter is inserted through tracheal and tracheostomy tubes. Four eyes at the catheter's tip serve as vacuum breakers to help prevent tissue from being pulled into the tube. Since suctioning removes the patient's air supply, suction should not exceed 10 seconds duration. Suction catheters are intended for single use only.)
Medical Products 7.2.bg
Therapy - Cold
(Cold compression)
Medical Products 7.2.bh
Therapy - Heat
(Heat warmers)
Medical Products 7.2.bi
Tongue depressors
Medical Products 7.2.bj
Transducer gel
Medical Products 7.2.bk
Venous blood sets
Medical Products 7.2.bl
Visually Impaired Supplies & Equipment - Other
Medical Products 7.2.bm
X-Ray developer solution
Disclosed Practice 8 – Collection and Remittance Requirements Related to Remote Sellers, Marketplace Sellers, and Marketplace Facilitators/Providers from Appendix E of the SSUTA. NOTE: Additional explanatory information and examples can be found in Appendix E of the SSUTA.
Unless otherwise specified, Disclosed Practice 8 only applies to the states’ sales and use tax laws, and not to other taxes or other regulatory registration requirements.
(These tax administration practices address how a member state administers its sales and use tax economic nexus, remote seller, and marketplace facilitator/provider statutes. The United States Supreme Court (SCOTUS) ruled in South Dakota v. Wayfair on June 21, 2018, that states can require sellers to collect and remit sales or use tax on sales delivered to locations within their state even if the seller does not have a physical presence in the state.)
Unless otherwise noted, States should answer every disclosed practice question/statement.
Does Your State Follow this Practice?
Does Your State Follow this Practice? If You Answered No, Describe the Difference Between the Practice as Adopted by the Governing Board and Your state's Treatment. Add Additional Comments if desired.
"Remote Seller" is generally a seller that does not have any physical presence in a state (no property or employees) but who sells products or services for delivery into that state.
A remote seller includes a "marketplace seller" that does not have a physical presence in the state.
(Note: A state may allow a seller to have limited physical presence in the state and still treat the seller as a remote seller as provided in (A) and (B).)
(A)(1) Inventory Controlled by 3rd Party
(A) (1) The State still treats a seller as a "Remote Seller" if the seller’s only physical presence in the state is inventory owned by that seller that is in a third party’s warehouse which the seller does not control (e.g., Marketplace Facilitator/Provider controls the movement of inventory). (Note, the exception in (A)(2) and/or (B) may also apply.)
X
RCW 82.04.067(3)
A person is physically present in Washington if the person has property or employees in this state, or either directly or through an agent or other representative, engages in activities in this state that are significantly associated with the person's ability to establish or maintain a market for its products in this state. . RCW 82.04.067(3).
(A)(2) Inventory Seller Controls
(A)(2) The State still treats a seller as a “Remote Seller” if the seller’s only physical presence in the state is inventory owned by that seller that is in a third party’s warehouse and the seller controls the movement of the inventory. (Note, the exception in (A)(1) and/or (B) may also apply.)
X
RCW 82.04.067(3)
A person is physically present in Washington if the person has property or employees in this state, or either directly or through an agent or other representative, engages in activities in this state that are significantly associated with the person's ability to establish or maintain a market for its products in this state.. RCW 82.04.067(3)(a)(1).
(B) Employees
(B) The State still treats a seller as a “Remote Seller” if the seller’s only physical presence in the state is an employee that is not involved in making sales. If for purposes of Disclosed Practice 8.1.(B) the State distinguishes between retail and wholesale sales, the State will indicate it in the Comment column.
(Note, the exception in (A) may also apply.)
X
RCW 82.04.067(3)
A person is physically present in Washington if the person has property or employees in this state, or either directly or through an agent or other representative, engages in activities in this state that are significantly associated with the person's ability to establish or maintain a market for its products in this state.. RCW 82.04.067(3)(a)(1).
8.1.a.i.
The State’s Remote Seller monetary economic nexus threshold is “$100,000” (i.e., either $100,000 or more” or “more than $100,000”). (Definition of “type of products” subject to the threshold calculation is addressed in 8.1.b.)
If ”Yes”, indicate in the Comment column if the State’s monetary economic nexus threshold is:
“$100,000 or more” or
“More than $100,000”.
If “No”, indicate in the Comment column the dollar amount of the State’s monetary economic nexus threshold and whether it is:
“$X or more” or
“More than $X”.
If the state does not have a monetary economic nexus threshold, indicate ”No Threshold”.
X
RCW 82.08.052(2);
RCW 82.04.067(1)(c)(i)
More than $100,000
Reference Number
Disclosed Practice 8.1.b. – What Type of Products Does the State Include in its Economic Nexus Threshold Calculation?
Yes
No
Statute/Rule Cite
Comment
Disclosed Practice 8.1.b.i.
The State includes sales of all types of products (e.g., sales of tangible personal property, sales of digital good, sales of services) in its economic nexus threshold calculation.
If no, indicate in the Comment column which types of product sales are included in the state’s economic nexus threshold.
(Note: For purposes of these disclosed practices, the sales of the types of products identified in 8.1.b. are the sales to be considered when computing the state’s economic nexus threshold(s).)
X
RCW 82.08.052(2);
RCW 82.04.067(1)-(2)
In addition to sales of products, all of a person’s gross income of the business from all activities subject to tax in Washington and attributed to Washington is included.
Reference Number
Disclosed Practice 8.1.c. - How is the State’s Remote Seller Monetary Economic Nexus Threshold Calculated? – Only one answer should be “yes”.
Yes
No
Statute/Rule Cite
Comment
8.1.c.i. - GROSS
The State’s Remote Seller monetary economic nexus threshold is based on GROSS sales, gross revenue or gross receipts from all sales.
X
8.1.c.ii. - RETAIL
The State’s Remote Seller monetary economic nexus threshold is based only on RETAIL sales (only excludes sales for resale).
X
8.1.c.iii. - TAXABLE
The State’s Remote Seller monetary economic nexus threshold is based only on TAXABLE sales (all sales that are taxable ).
X
8.1.c.iv. - OTHER
The State calculates the monetary economic nexus threshold based on something other than Gross, Retail or Taxable sales. Indicate in the Comment column what your state’s monetary economic nexus threshold is based on.
X
RCW 82.08.052(2);
RCW 82.04.067(1)-(2)
Washington calculates the economic nexus threshold based on cumulative gross receipts, including all gross income of the business from all activities subject to tax in Washington and attributed to Washington, and is not limited to gross receipts from sales.
Reference Number
Disclosed Practice 8.1.d. - What is the State’s Remote Seller Transactional Economic Nexus Threshold?
Yes
No
Statute/Rule Cite
Comment
8.1.d.i.
The State’s Remote Seller transactional economic nexus threshold is “200” (i.e., either“200 or more” or “more than 200”) separate transactions. (What constitutes a “transaction” is explained in 8.1.e and 8.1.f)
If “Yes” - Indicate in the comments if transactional threshold is:
“200 or more transactions” or
“More than 200 transactions”.
If “No” – Indicate in the Comment column the State’s transactional economic nexus threshold and whether it is:
“X transactions or more” or
“More than X transactions”
If the State does not have a transactional economic nexus threshold indicate ”No Threshold” in the Comment column.
RCW 82.08.052
No threshold.
Reference Number
Disclosed Practice 8.1.e. - Which Transactions Are Used to Determine if a Seller Has Met a State’s Transactional Economic Nexus Threshold?
Yes
No
Statute/Rule Cite
Comment
8.1.e.i
The State’s Remote Seller transactional economic nexus threshold is calculated using the same transactions that are used to calculate the State’s monetary economic nexus threshold (gross, retail or taxable) as indicated in Disclosed Practice 8.1.b.
No threshold.
Reference Number
Disclosed Practice 8.1.f. - For Purposes of Computing the State’s Transactional Economic Nexus Threshold, what is Considered a “Transaction”? Only one answer should be “Yes” for i., ii., or iii.
Yes
No
Statute/Rule Cite
Comment
8.1.f.i.
The State’s Remote Seller transactional economic nexus threshold is based on the number of invoices.
No threshold.
8.1.f.ii.
The State’s Remote Seller transactional economic nexus threshold is based on the number of orders placed, regardless of whether multiple invoices or shipments are used to fulfill each order placed (e.g., if a single order is placed but it is delivered in three (3) separate shipments, it is considered one (1) transaction).
No threshold.
8.1.f.iii.
The State’s Remote Seller transactional economic nexus threshold is based on the quantity of items sold (each item on a single invoice is considered a separate transaction (e.g., a prepackaged box of the same product is one item (box of 12 pencils); however, multiple purchases of the same product are separate items (12 individual pencils)).
No threshold.
8.1.f.iv.
An invoice that includes items to be delivered into multiple states is considered a transaction in this State if any of the items on the invoice are delivered into this State.
No threshold.
Reference Number
Disclosed Practice 8.1.g. – Transaction with Multiple Payments
Yes
No
Statute/Rule Cite
Comment
8.1.g.i.
A transaction that requires multiple payments (e.g., monthly payments) is considered one transaction for purposes of the State’s Remote Seller transactional economic nexus threshold (i.e., each payment is not considered a separate transaction).
No threshold.
Reference Number
Disclosed Practice 8.1.h. – Does a Remote Seller who makes sales through a Marketplace Facilitator/Provider need to include the sales made through the marketplace in determining if it meets a state’s economic nexus threshold?
Yes
No
Statute/Rule Cite
Comment
8.1.h.i.
A Remote Seller shall include its sales made through a Marketplace Facilitator/Provider that is registered in the State when determining if it meets or exceeds the state’s economic nexus threshold.
X
RCW 82.08.052(2);
RCW 82.04.067(2).
8.1.h.ii.
A Remote Seller shall include its sales made through a Marketplace Facilitator/Provider that is not registered in the State when determining if it meets or exceeds the state’s economic nexus threshold.
X
RCW 82.08.052(2);
RCW 82.04.067(2).
Reference Number
Disclosed Practice 8.1.i. - What period of time does the State base its a remote seller economic nexus threshold on? – Only one answer should be yes.
Yes
No
Statute/Rule Cite
Comment
8.1.i.i. - EITHER CURRENT or PREVIOUS YEAR
The State’s economic nexus threshold is based on a Remote Seller exceeding the threshold in either the previous calendar year or current calendar year.
X
RCW 82.08.052(2);
RCW 82.04.067(1).
8.1.i.ii. - ONLY PREVIOUS YEAR
The State’s economic nexus threshold is based on a remote seller exceeding the threshold only in the previous calendar year.
X
8.1.i.iii. - OTHER
The State’s economic nexus threshold is based on a different period of time. (Provide the basis in the Comment column.)
X
Reference Number
Disclosed Practice 8.1.j. – When does the State require a remote seller to register and begin collecting and remitting the applicable tax? – Only one answer should be yes.
Yes
No
Statute/Rule Cite
Comment
8.1.j.i.
The State requires a Remote Seller to register, collect and remit the tax on the next transaction after meeting or exceeding the threshold.
X
8.1.j.ii.
The State requires a Remote Seller to register, collect and remit the tax by no later than the first day of the first calendar month that begins at least X days after meeting or exceeding the threshold.
Indicate in the Comment column the number of days after the threshold is met that the seller is required to register and begin collecting and remitting the tax.
X
82.08.052(4); RCW 82.04.220; RCW 82.32.030
Sales Tax Collection. The remote seller must collect the sales tax beginning on the first day of the first calendar month that begins at least 30 days after meeting the nexus threshold.
Earlier requirement for registration and B&O Tax obligation. The remote seller is required to register and pay B&O tax on sales beginning on the date it exceeds the threshold. RCW 82.04.220.
8.1.j.iii.
Other. If the State’s answer to 8.1.j.i and j.ii is “no” indicate in the Comment column when a Remote Seller must register and begin collecting and remitting the tax.
X
82.08.052(4); RCW 82.04.220; RCW 82.32.030
Sales Tax Collection. The remote seller must collect the sales tax beginning on the first day of the first calendar month that begins at least 30 days after meeting the nexus threshold.
Earlier requirement for registration and B&O Tax obligation. The remote seller is required to register and pay B&O tax on sales beginning on the date it exceeds the threshold. RCW 82.04.220.
Reference Number
Disclosed Practice 8.1.k. - When is a remote seller who falls below a state’s economic nexus threshold allowed to stop collecting and remitting the tax?
Yes
No
Statute/Rule Cite
Comment
8.1.k.i.
A Remote Seller that falls below the State’s Remote Seller economic nexus threshold(s) during the measurement period (See 8.1.i.) may cancel its registration or request inactive status any time after the measurement period ends.
If yes, indicate in the Comment column if the remote seller can:
Cancel the registration, or
Request inactive status.
If the answer is no, indicate in the Comment column when a Remote Seller can cancel their registration or request inactive status.
X
RCW 82.08.052;
RCW 82.04.067;
RCW 82.04.220
May request to cancel/close its tax registration account or have it placed in an "active-non-reporting" status.
Reference Number
Disclosed Practice 8.1.l. – What Type of Permit Does a Remote Seller Apply For? – Only one answer should be yes.
Yes
No
Statute/Rule Cite
Comment
8.1.l.i.
The State requires a Remote Seller to register to collect sales tax.
X
8.1.l.ii.
The State requires a Remotes Seller to register to collect (seller’s) use tax.
X
8.1.l.iii.
The State requires a Remote Seller to register under a single registration to collect both sales and (seller’s) use tax.
X
RCW 82.32.030;
WAC 458-20-101(5)(b)
The single registration also applies to other taxes the remote seller is required to collect, and B&O tax and any other taxes imposed on the remote seller's business activities that the registration under RCW 82.32.030 applies to.
8.1.l.iv.
The State allows a Remote Seller to register to collect either a sales or (seller’s) use tax. If yes, please explain in Comment column any special circumstances.
X
Disclosed Practice 8.1.m. Can a Remote Seller that is not registered or required to be registered in any State provide an exemption certificate claiming sale for resale to a Seller located in this state and can that Seller accept that exemption certificate? More information on a state’s acceptance of an exemption certificate is available at: Exemptions (streamlinedsalestax.org)
Yes
No
Statute/Rule Cite
Comment
8.1.m.i.
A Remote Seller that is not registered or required to be registered in any State can provide an exemption certificate to a Seller in this State claiming a sale for resale for those items the Remote Seller will resell, and the Seller in this State may accept such exemption certificate.
If yes, indicate in the Comment column what identification number, if any, the Remote Seller is required to put on the certificate?
The remote seller may use a Washington business number (UBI #) or reseller permit number, a state-issued driver’s license number, a U.S. federal ID number, or SSTID
8.1.m.ii.
A Remote Seller that is not registered or not required to be registered in any State purchasing items for resale from a third- party supplier (drop shipper) who will deliver the items to the Remote Seller’s customer located in this State can issue an exemption certificate claiming resale and the third-party supplier (drop shipper) can accept such exemption certificate. See SSUTA Sec. 317.A.8 for Drop Shipment requirements.
If yes, indicate in the Comment column what identification number, if any, the Remote Seller is required to put on the exemption certificate.
The remote seller may use a Washington business number (UBI #) or reseller permit number, a state-issued driver’s license number, a U.S. federal ID number, or SSTID
General definition of Marketplace Seller
Disclosed Practice 8.2 - Marketplace Sellers[Note: Most States enacted laws related to Marketplace Facilitators/Providers that resulted in a Marketplace Seller definition. A “Marketplace Seller” is generally a seller who sells products or services through a physical or electronic marketplace operated by a Marketplace Facilitator/Provider.]
Disclosed Practice 8.2.a - Does a State require a Marketplace Seller to register in the state when all sales are made through Marketplace Facilitators/Providers that are registered to collect and remit the tax on behalf of the Marketplace Sellers?
Yes
No
Statute/Rule Cite
Comment
8.2.a.i.
The State requires a Marketplace Seller that is a “Remote Seller” that sells exclusively through Marketplace Facilitators/Providers to register with the State.
X
RCW 82.32.030;
WAC 458-20-102.
8.2.a.ii.
The State requires a Marketplace Seller with a physical presence (i.e., not a Remote Seller) that sells exclusively through Marketplace Facilitators/Providers to still register with the State.
X
RCW 82.32.030;
WAC 458-20-102.
Disclosed Practice 8.2.b – Does the State require a Marketplace Seller to include its sales (dollars and transactions) made through a Marketplace Facilitator/Provider in determining if it meets or exceeds the State’s economic nexus threshold?
Yes
No
Statute/Rule Cite
Comment
8.2.b.i.
The State requires a Marketplace Seller to include its sales (dollars and transactions) made through a Marketplace Facilitator/Provider in determining if it meets or exceeds the state’s economic nexus threshold. See Disclosed Practice 8.1.b. for which types of transactions must be included.
X
RCW 82.08.052;
RCW 82.04.067
Disclosed Practice 8.2.c – Does the State require a Marketplace Seller that is registered and filing in the State to include its marketplace sales in the total sales reported on its tax return and take a deduction as if the sales are exempt?
Yes
No
Statute/Rule Cite
Comment
8.2.c.i.
The State requires a Marketplace Seller registered and filing in the State to include its sales through a Marketplace Facilitator/Provider on its tax returns. (If yes, explain in Comment column on how the deduction is claimed for such sales.)
X
RCW 82.32.045; RCW 82.04.067; WAC 458-20-282
The marketplace seller reports all of its retail sales on its tax return and may take a retail sales tax deduction for the sales through the marketplace in which the facilitator collected the tax. When taking the deduction, the marketplace seller identifies that it was for facilitated sales.
Disclosed Practice 8.2.d – Does the State require a Marketplace Seller to maintain exemption documentation only for its direct sales, and not for sales made through a Marketplace Facilitator/Provider?
Yes
No
Statute/Rule Cite
Comment
8.2.d.i.
The State requires a Marketplace Seller to maintain exemption documentation only for its direct sales, and not for sales made through Marketplace Facilitators/Providers.
X
RCW 82.32.070; WAC 458-20-282
A marketplace seller should maintain exemption documentation for B&O tax to substantiate facilitated sales and non facilitated sales and for sales where there is incorrect information.
Disclosed Practice 8.2.e – Does the State allow a Marketplace Seller to rely upon a customer’s exemption documentation for its direct sales, even where the exemption documentation is maintained by a Marketplace Facilitator/Provider?
Yes
No
Statute/Rule Cite
Comment
8.2.e.i.
The State allows a Marketplace Seller to rely upon a customer’s exemption documentation for its direct sales even though that exemption documentation is maintained by a Marketplace Facilitator/Provider (e.g., Marketplace Seller has access to the Marketplace Facilitator’s/Provider’s exemption documentation).
The "no" response assumes that the Marketplace Facilitator's exemption documentation will not always apply to a marketplace seller's direct sales because the documentation may have been provided for different sales by a different seller, may specify a different seller, and it is unclear that the exemption documentation is furnished from the purchaser.
The marketplace seller will be relieved from liability if it obtains a fully completed exemption certificate or captures the relevant data elements within 90 days, or within 120 days of a request for substantiation by Department of Revenue, proves the transaction was not subject to tax by other means or obtains a fully completed exemption certificate from purchaser, taken in good faith. RCW 82.08.050(7)(a)-(b).
Disclosed Practice 8.2.f – Can a Marketplace Seller that is not registered or not required to be registered in any State issue an exemption certificate to a Seller located in this State claiming sale for resale and can that Seller accept that exemption certificate?
Yes
No
Statute/Rule Cite
Comment
8.2.f.i
A Marketplace Seller that is not registered or required to be registered in any State can issue an exemption certificate to a Seller located in this State claiming resale for those items the Marketplace Seller will resell and the Seller in this State may accept such exemption certificate.
If yes, indicate in the Comment column what identification number, if any, the Marketplace Seller is required to put on the certificate.
The seller may use a Washington business number (UBI #) or reseller permit number, a state-issued driver’s license number, a U.S. federal ID number, or SSTID.
However, a seller making wholesale sales through a marketplace is not a marketplace seller as defined in Washington to only include a seller making retail sales through a marketplace. See RCW 82.08.010(16).
8.2.f.ii.
A Marketplace Seller that is not registered or not required to be registered in this State purchasing items for resale from a third- party supplier (drop shipper) who will deliver the items to the Marketplace Seller’s customer located in this State can issue an exemption certificate claiming resale and the third-party supplier (drop shipper) can accept such exemption certificate. See SSUTA Sec. 317.A.8 for Drop Shipment requirements.
If yes, indicate in the Comment column what identification number, if any, the Marketplace Seller is required to put on the certificate.
The remote seller may use a Washington business number (UBI #) or reseller permit number, a state-issued driver’s license number, a U.S. federal ID number, or SSTID
However, a seller making wholesale sales through a marketplace may not be a marketplace seller as defined in Washington to include a seller making retail sales through a marketplace. See RCW 82.08.010(16).
Reference Number
Disclosed Practice 8.2.g - Marketplace Seller Liability and Audits
Yes
No
Statute/Rule Cite
Comment
8.2.g.i.
A Marketplace Seller is liable for the tax on sales made through a Marketplace Facilitator/Provider if the Marketplace Seller provides incorrect or insufficient information. (Explain in Comment column if there are exceptions to this rule.)
X
RCW 82.08.0531
.A marketplace seller is liable for tax if it provides incorrect information to the marketplace facilitator. The marketplace facilitator may remain liable if correct but insufficient information is provided.
