Marketplace seller without physical nexus
You are a retailer outside of Washington state. You make sales to Washington through your company website and through an online marketplace.
Annual gross sales into Washington: $20,000
Sales made through company website: $15,000
Sales made through online/marketplace retailer: $5,000
In this scenario, you:
- Do not have physical nexus or meet the $285,000 annual threshold for Business & Occupation Tax (B&O)
- Do meet the $10,000 threshold for retail sales into Washington and have elected to collect Retail Sales Tax (RST)
When you file your excise tax return through My DOR, you must complete both the B&O and RST sections even though you do not owe B&O.
11 On the B&O screen, enter gross sales into "Gross Amount."
2. Select "Add Deduction." In the pop-up window select "No Local Activity" and type in total sales ($20,000). Then click "ok."
3. Your screen should now show a Tax Due Amount of $0. Select "next" when you are ready to move on to state retail sales and use tax.
4. Enter total gross sales into Gross Amount.
5. Select "Add Deduction." In the pop-up window select Gross Sales Collected by Facilitator from the check-list. Enter amount collected by Facilitator into the Retail Sales Tax Collected by Facilitator field on the right. Click "ok."
6. Your total "Tax Due" should now be adjusted to reflect the amount that the facilitator collected taxes on.