Washington State sales taxes are "destination based" creating a minefield for sellers and "market facilitators" like eBay
. Tax rates vary by district and may include entities like regional transit districts with boundaries that split ZIP codes. Stamp dealers who sell at shows in Washington State have additional issues to sort out.
Recent communication from Washington State DOR regarding marketplace facilitator reporting requirements:
Thank you for your email message dated January 14, 2019 regarding selling through marketplace facilitators.
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Our responses follow your questions.
1. Are market facilitators required to report Washington State sales to sellers when tax is collected on their behalf?
No. Generally, marketplace facilitators must collect the sales and remit the sales tax directly to the Department of Revenue on behalf of their marketplace sellers.
2. If not, how do in-state businesses and certain other retailers subject to B&O tax file an accurate tax return?
Marketplace sellers should maintain confirmation that the marketplace facilitator will collect and remit sales tax on their behalf.
In this case, the marketplace seller should report their gross sales to consumers (including sales made through a marketplace facilitator) under both the retailing B&O tax and retail sales tax classifications. For the sales where a marketplace facilitator collects and remits Washington's sales tax on their behalf, they may claim a deduction under the Retail Sales tax classification for "Retail Sales Tax Collected by Facilitator."
If you have further questions, please write again.
Tax Information Specialist Washington State Department of Revenue RulingsDOR@dor.wa.gov
While no reporting requirement exists, I don't understand how sellers required to report Washington State Sales tax will be able to file a complete and accurate tax return without detailed reporting from marketplace facilitators like eBay
The complete thread appeared yesterday in eCommerce Bytes:https://www.ecommercebytes.com/C/le...9377952.html
The State of California has announced that tax collection from out of state sellers will begin April 1, 2019 for sellers meeting their 200 transaction or $100,000 annual sales criteria. I checked my sales on eBay
for 2018 and found that it is ridiculously easy to reach the 200 sales-threshold without coming close to the dollar amount criteria. California also has a destination-based sales tax, but it is nowhere near as complicated as Washington State. Out-of-state stamp dealers who sell at shows in California will be in a bind because, the state may start asking dealers about out-of-state sales Internet sales when they set up at major shows like WESTPEX or SESCAL. Since it is doubtful that eBay
will start collecting California sales tax on April 1st, who will compel high volume rogue dealers that clutter the eBay
site to collect California sales taxes. Will failure to collect sales taxes be added to misidentified and misdescribed stamps as another competitive disadvantage faced by legitimate stamp sellers on eBay