Washington Rules on Interstate Transactions and Use Tax Updated

Washington excise tax rules on interstate sales and the collection of use tax are updated to reflect the U.S. Supreme Court’s decision in South Dakota v. Wayfair.

Economic Nexus Standard

In response to the Wayfair decision, the Department of Revenue requires remote sellers to collect sales or use tax on taxable sales sourced to Washington if the remote seller exceeds:

  • $100,000 in gross retail sales in the state; or
  • 200 retail transactions in the state.

The thresholds may be met in the current or the prior calendar year.

Guidance on Washington Department of Revenue Website

Taxpayers are directed to consult the department’s website for current information on tax collection responsibilities.The department has amended the rules on interstate sales and the collection of use tax in order to warn taxpayers that the rules may contain outdated guidance.

WAC 458-20-193 and WAC 458-20-221, Washington Department of Revenue, effective September 26, 2018

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All stories by: CCHTaxGroup