Getting a sales tax permit in Washington State is more than just a checkbox—it’s your legal gateway to selling goods or services within the state. Whether you’re launching an online store, opening a physical location, or selling at local events, the right permit ensures you’re collecting and remitting taxes properly. But the path to registration can get confusing fast, especially with Washington’s unique mix of excise tax rules, reseller permits, and destination-based sourcing.
This guide walks you through everything you need to know to stay compliant—from determining if you need a permit to filing returns and managing exemptions. And if you’d rather skip the paperwork and avoid costly mistakes, Hands Off Sales Tax (HOST) is here to take care of it all. Let’s break it down, step by step.
What Is a Washington Sales Tax Permit?
Understanding the different permit types in Washington ensures your business remains compliant while taking advantage of available options.
Seller’s (Excise & Sales Tax) Permit
This primary permit authorizes you to collect and remit state and local sales and use tax, as well as excise taxes like the Business & Occupation (B&O) tax. It’s mandatory for most sellers with nexus in Washington.
Reseller Permit
A Reseller Permit allows businesses to purchase goods for resale without paying sales tax upfront.
- Typically valid for 48 months, with conditional shorter terms for new or low-activity businesses.
- Misuse (e.g., buying for personal use) may result in penalties or permit revocation.
Event (Special) Permit
Transient vendors—such as market or fair sellers—need a temporary event permit to collect sales tax at those locations. This ensures short-term sales are tracked and taxed appropriately.
Direct-Pay Permit
Large taxpayers may apply for a Direct-Pay Permit, allowing them to self-assess use tax on purchases rather than paying tax at the point of sale.
- Eligibility includes businesses with over $240 k in annual tax liability or $10 M in taxable purchases.
- Applicants must demonstrate robust tax compliance systems.
Who Needs to Register? Nexus & Thresholds
Determining whether you need a Washington sales tax permit hinges on the type of nexus your business has in the state—physical presence, significant sales, or even short-term activity such as events.
Physical Nexus
You’re required to register if your business has any of the following in Washington:
- A physical location such as an office, storefront, or warehouse
- Employees or contractors operating within the state
- Stored inventory, including in third-party fulfillment centers like Amazon FBA
- Sales made from booths at local fairs or trade shows
These activities establish a physical nexus, making a permit necessary.
Economic Nexus
Even without a physical presence, out-of-state sellers must register if in the current or previous calendar year they:
- Exceed $100,000 in sales into Washington, or
- Complete 200 or more transactions with Washington customers
Both taxable and tax‑exempt sales count toward these thresholds. Once met, registration is required within 30 days and remains in effect through the end of the following year.
Transient Sellers & Event Vendors
Vendors selling at fairs, festivals, trade shows, or temporary events must obtain a special event permit and collect sales tax onsite. Even one-day activities can trigger this requirement.
Understanding your nexus status—whether physical, economic, or temporary—ensures you register correctly, avoid penalties, and stay compliant from day one.
Step-by-Step Registration Process For Sales Tax Permit in Washington State
Getting registered for a Washington sales tax permit is straightforward when you know what to prepare and where to apply. Here’s a clear breakdown.
What You’ll Need Before Applying
- Federal EIN (or SSN if you’re a sole proprietor)
- Business structure details (LLC, corporation, sole proprietor, etc.)
- Ownership information, including names and contact info for all owners or officers
- NAICS code that best describes your primary business activity
- Estimated monthly taxable sales, used to determine filing frequency and obligations
These details are required whether you’re applying online or by mail.
Online Registration via Business Licensing Wizard
- Navigate to Washington’s Business Licensing Wizard.
- Complete the Business License Application (Form BLS 700 028), selecting tax endorsement(s) including sales tax.
- Pay the associated fee (typically $19 for first-time registration).
- Once processed (usually within 10 business days), you’ll receive your UBI number, seller’s permit, and excise tax account via the My DOR system.
After that, log in through Secure Access Washington (SAW) to link your My DOR account to the UBI and seller’s permit.
Paper Application Option
Prefer mail? Download Form BLS 700 028, fill in relevant details, and mail to:
BLS – Business Licensing Service
PO Box 9034
Olympia, WA 98507-9034
Mail-in applications take 3–6 weeks to process—longer if city or county endorsements are included.
With your permit in hand, you’re ready to collect and remit sales tax.
Tax Rates & Sourcing Rules
Understanding how to calculate sales tax in Washington is crucial—it combines state, local, and special taxes, plus destination-based rules depending on where your goods or services go.
State & Local Rates
- Base state tax is 6.5%.
- Local jurisdictions may add up to 3.9%, bringing total rates from 6.5% to 10.4% depending on city and county. For instance, Shoreline collects the full 10.4% (6.5% state + 3.9% local).
Destination-Based Sourcing
Washington uses destination-based sourcing, meaning the tax rate of the customer’s location must be applied for each sale. Exceptions include sales finalized at your physical location, in which case the origin-based rate applies.
Marketplace Facilitators
Major platforms like Amazon, Etsy, and eBay often collect and remit sales tax on your behalf as marketplace facilitators. However, that only covers marketplace sales—you’re still responsible for direct sales through other channels.
Rate Lookup Tool
Ensure accuracy using the official Washington Department of Revenue Local Sales Tax Rate lookup tool.
This clarity on sourcing and rates ensures you’re charging—the right tax, to the right location, every time.
Filing Frequency, Zero‑Returns & Penalties
Staying current with filing obligations is essential to avoid unnecessary fines and maintain compliance with Washington’s sales tax regulations.
Filing Frequency
- Your filing frequency—monthly, quarterly, or annually—is assigned based on your average tax liability as determined by the Department of Revenue .
- High-volume retailers may be required to file monthly, while smaller businesses with less activity might qualify for quarterly or annual reporting.
Zero-Return Requirement
Even if there’s no taxable activity, you must file a zero-return for every reporting period. Failing to file—even with zero sales—can result in account suspension and administrative actions.
Due Dates & Extensions
- Returns are typically due on the 25th of the month following the reporting period .
- If the 25th falls on a weekend or public holiday, due dates shift to the next business day.
Penalties & Interest
- Late filings incur a 5% penalty per month.
- Late penalties of 19 to 29% proceed as follows:
- 19% penalty due after the last day of the month following the return’s due date;
- 29% penalty due after the last day of the second month following the return’s due date.
By understanding your filing requirements and acting proactively, you can avoid penalties and ensure smooth compliance with Washington’s tax rules.
Resale Certificate Compliance
Accepting resale certificates correctly allows tax-free purchases on goods you intend to resell—but proper process and records are critical.
What Is a Reseller Permit
Washington issues a Reseller Permit—technically a document, not just a number—to qualifying businesses making wholesale purchases. Sellers with a valid UBI and tax account often receive one automatically; others may need to apply via My DOR. The permit typically expires every four years, though it may be shorter (two years) for new businesses, contractors, or low-activity entities.
How to Accept and Validate
- Always obtain a copy of the reseller permit—digital or print—for each sale. Sellers may use the state’s Reseller Permit Verification Service to confirm validity.
- Disallow resale treatment until you’re confident the certificate is correct and valid; sellers may refuse sales if misuse is suspected.
Recordkeeping & Audit Risk
- Keep all reseller permits on file for at least five years, along with documentation like invoices showing the permit number and details.
- Failure to verify and maintain proper certificates may result in audits, the disallowance of tax-exempt sales, or liability for unpaid sales tax plus penalties and interest.
By rigorously verifying permits and retaining documentation, you protect your business and ensure smooth, compliant resales.
B&O Tax Connection
Collecting sales tax is just one part of Washington’s business tax landscape. You also need to understand how the Business & Occupation (B&O) tax works and how it intersects with your sales tax obligations.
What Is the B&O Tax?
- The B&O tax is a gross receipts tax, based on your total revenue—not just taxable sales.
- Rates vary by business classification, typically ranging from 0.13% to 1.5% depending on your industry sector .
- Unlike income tax, there are no deductions—making accurate bookkeeping essential .
Sales Tax vs. B&O Tax
- Sales tax is paid by your customers but remitted by you on their behalf.
- B&O tax is a business-level tax calculated based on your total revenue, not passed to the customer.
Registration & Reporting
- When you register for a sales tax permit, most businesses are also automatically enrolled for B&O tax through the Business Licensing Service (BLS).
- Reporting for both often occurs on the same return form via My DOR, with aligned due dates and frequencies to streamline compliance.
Understanding both taxes—and how they connect—will help you avoid surprises and integrate your filing and financial planning seamlessly.
Managing Permits & Account Changes
Keeping your Washington business license and tax permits current is vital for ongoing compliance and avoiding penalties.
Adding Locations & Permit Updates
- Use the Business Licensing Service (BLS) portal to add outlets or change ownership—updates sync with your UBI and tax accounts instantly.
- To close a location or shut down operations, update or terminate your account through BLS, and file a final return to settle outstanding tax.
Annual UBI Renewal
- The UBI (Unified Business Identifier) must be renewed annually via the BLS. Ensure registration is complete and fee paid to maintain sales tax authority .
- Letting the UBI lapse can lead to permit suspension and filing disruptions.
Staying on top of account changes and annual renewals ensures uninterrupted compliance with Washington’s regulatory requirements.
End-to-End Sales Tax Compliance, Handled for You
Navigating sales tax compliance across different states isn’t just about getting a permit—it’s about managing a long list of ongoing requirements. That’s where Hands Off Sales Tax (HOST) comes in. HOST is your one-stop solution for complete sales tax support, so you can stay focused on growing your business.
Here’s what HOST takes off your plate:
- Sales Tax Registration: From choosing the right permit type to filing paperwork in all applicable states, HOST handles every registration detail for you.
- Filing & Remittance: HOST prepares and submits your monthly, quarterly, or annual returns—always on time, with zero-returns included.
- Economic Nexus Tracking: Automated monitoring of your sales and transactions helps you stay ahead of state-specific thresholds.
- Resale Certificate Support: HOST’s proprietary tool, ResaleCertify, helps you generate valid resale certificates quickly and accurately.
- Audit Defense: If a state initiates an audit or sends a notice, HOST deals with the agency directly—so you don’t have to.
- Permit Maintenance & Updates: Whether you’re adding locations, closing outlets, or correcting records, HOST manages all your permit changes via the proper channels.
With HOST, you can eliminate the guesswork, avoid penalties, and stay confidently compliant—no matter where you sell.
Stay Compliant in Washington—Without the Stress
Managing a Washington sales tax permit is just one piece of a complex compliance puzzle. From sourcing rules to B&O tax and resale documentation, the margin for error is slim—and the cost of mistakes can be high. Whether you’re selling from a storefront, shipping across counties, or managing marketplace listings, staying compliant requires more than a permit.
As your full-service partner for all things sales tax, HOST handles registration, filings, nexus tracking, audits, and more. Ready to stop juggling tax rules? Reach out to HOST today for a tailored consultation.
Frequently Asked Questions
1. Do I need a Washington sales tax permit if I only sell online?
Yes—if you have economic nexus (over $100,000 in annual Washington sales) or physical nexus (such as inventory stored in-state), you must register for a sales tax permit even if you only sell through platforms like Amazon or Etsy.
2. What’s the difference between a Reseller Permit and a Sales Tax Permit?
A Sales Tax Permit authorizes you to collect and remit sales tax in Washington. A Reseller Permit, on the other hand, allows you to buy goods tax-free if you intend to resell them. Both are issued by the Washington Department of Revenue.
3. How long does it take to get a sales tax permit in Washington?
Online registrations through the Business Licensing Wizard and DOR portal typically take 1–2 business days. Paper applications may take 4–5 business days to process.
4. Is Washington sales tax origin-based or destination-based?
Washington follows destination-based sourcing, which means you charge sales tax based on the buyer’s location—not where your business is located.
5. What happens if I miss a filing deadline or file a zero return late?
Late filings are subject to penalties between 5% and 25%, plus interest. Even if you owe nothing, you must file a zero return to avoid compliance issues.
