Washington Tax Nexus
Businesses with nexus in Washington are required to register with the Washington Department of Revenue and to charge, collect and remit the appropriate tax.
Generally, a business has nexus in Washington when it has a physical presence there, such as a retail store, warehouse, inventory, or the regular presence of traveling salespeople or representatives. However, out-of-state sellers can also establish nexus in the ways described below.
Washington nexus for out-of-state seller
Referrals, including online referrals, from in-state entities may create nexus for an out-of-state seller. Under state law (RCW 82.08.052), a remote seller is presumed to have a substantial nexus with Washington if both the following conditions are met:
- The remote seller enters into an agreement with a resident of Washington under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an internet web site or otherwise, to the remote seller
- The cumulative gross receipts from sales by the remote seller to customers in Washington who are referred to the remote seller by all residents with this type of an agreement with the remote seller exceed $10,000 during the preceding calendar year
See RCW 82.08.052; and the Washington Department of Washington’s New Presumption of Nexus for Click-Through Retail Transactions and Out-of-State Businesses.