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Department of Revenue Releases Guidance Post Wayfair

by Ashley Kittrell | Aug 09, 2018
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Earlier this week, the Department of Revenue released guidance following the U.S. Supreme Court's South Dakota v. Wayfair, Inc. decision and its implementation in Washington. The ruling overturned the 1992 U.S. Supreme Court’s decision in Quill Corp. v. North Dakota, which only obligated sellers with a physical presence in a state to collect sales tax.

The DOR announced that a nexus change will occur on October 1 on a go-forward basis in Washington. The requirement to collect sales tax applies to remote sellers, referrers, and marketplace facilitators that have $100,000 in gross retail sales or a minimum of 200 retail sales.

Prior to the Wayfair decision, remote sellers, marketplace facilitators, and referrers had to either collect or adhere to use-tax notice and reporting standards if they met certain thresholds as defined in the 2017 Marketplace Fairness legislation (EHB 2163). There is no conflict between federal law and RCW 82.08.052; however, this announcement removes the use-tax notice and reporting option for remote sellers with $100,000 in gross retail sales or a minimum of 200 retail sales. 

You can read more about these changes on the DOR website: Wayfair's Impact on the Marketplace Fairness Act and Marketplace Fairness - leveling the playing field.

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