Getting a sales tax permit in Washington State is essential if you sell taxable goods or services, but navigating the state’s multi-layered tax system can be complex. You’ll need to register for a Unified Business Identifier (UBI), set up your sales tax account in My DOR, and comply with Washington’s destination-based sourcing rules. For many businesses, keeping up with registration, filings, and changing regulations can be overwhelming.
That’s where Hands Off Sales Tax (HOST) comes in—providing full-service sales tax compliance, from permit registration to ongoing filings, so you can stay focused on running and growing your business without risking costly mistakes.
Do You Need a Washington State Sales Tax Permit?
Not every business in Washington is required to register for sales tax, but many are—and the thresholds are lower than you might expect. Understanding the triggers will help you avoid noncompliance penalties.
In-State Sellers
You must register with the Washington Department of Revenue (WA DOR) if you:
- Earn $12,000 or more in gross income in a calendar year, regardless of whether your sales are taxable.
- Sell taxable goods or services to Washington customers.
- Maintain a physical presence, inventory, or employees in the state.
When you register, you’re not only getting a “sales tax permit”—you’re also setting up your account for retail sales tax collection and Business & Occupation (B&O) tax reporting.
Remote Sellers & Marketplace Facilitators
Washington has economic nexus rules for out-of-state businesses. You must register and collect Washington sales tax if, in the current or prior calendar year, you have more than $100,000 in gross receipts from sales to Washington customers.
Marketplace facilitators, such as Amazon or Etsy, are required to collect and remit sales tax on behalf of their sellers. However, you may still need to register for B&O tax if you meet nexus thresholds.
Step-by-Step: Register (BLS → UBI) then Add DOR Tax Accounts
Getting a Washington sales tax permit is a two-stage process—first, obtaining your Unified Business Identifier (UBI) through the Business Licensing Service (BLS), and then setting up your Washington Department of Revenue (DOR) tax accounts.
1. Apply for a Business License & UBI
Start with the Washington Business Licensing Service (BLS). This application registers your business statewide, issues a UBI number, and secures any required city or county endorsements for where you’ll operate.
You’ll need:
- Legal business name and entity details.
- NAICS code (your business classification).
- Business start date.
- Business location(s).
Once approved, you’ll receive your UBI, which functions as your business ID for all state-level registrations.
2. Set Up Your My DOR Account & Add Tax Registrations
After you receive your UBI, create an account on My DOR, the state’s online tax portal (My DOR Services). Through My DOR, you can add:
- Retail Sales Tax account (for sales tax collection).
- Use Tax account (for self-assessed purchases without sales tax).
- B&O Tax account (based on gross receipts).
During setup, you’ll be asked about estimated revenue to determine your filing frequency (monthly, quarterly, or annually).
3. What You’ll Receive
- UBI Number – your permanent state business ID.
- DOR Tax Account Number – for all filings.
- Filing Frequency Email – confirmation of how often you must file.
Completing both the BLS and DOR steps ensures you’re legally registered to collect and remit sales tax, as well as comply with Washington’s business tax obligations.
Reseller Permits: When You Need One (and How Long It Lasts)
If you regularly purchase goods for resale in Washington, you’ll need a reseller permit to avoid paying retail sales tax at the point of purchase. This applies to wholesalers, retailers, and certain contractors.
Purpose & Use
A reseller permit lets you buy items for resale without being charged sales tax. You present the permit to your supplier, who must keep it on file as proof of tax-exempt sales.
Validity Period
- 4 years – for established businesses with a good tax compliance record.
- 2 years – for contractors, new businesses, or those without a consistent reporting history (Legal Information Institute).
Getting, Renewing & Validating
You can apply for or renew a reseller permit through your My DOR account. Sellers should verify permits via the DOR’s online tool and maintain copies in their records to stay audit-ready.
Without a valid permit, purchases for resale are taxable—and the buyer, not the seller, is responsible for unpaid tax.
Filing the Combined Excise Tax Return (Sales, Use & B&O)
In Washington, most registered businesses must file the Combined Excise Tax Return (CETR), which reports retail sales tax, use tax, and business & occupation (B&O) tax in one form. The Washington Department of Revenue (DOR) assigns your filing frequency when you register.
Filing Frequencies
- Monthly – typically for higher-volume businesses.
- Quarterly – for moderate activity.
- Annual – for low-activity businesses.
Frequencies are set based on estimated revenue.
Due Dates
- Monthly: 25th of the following month.
- Quarterly: Last day of the month after the quarter ends.
- Annual: April 15.
If the due date falls on a weekend or holiday, it moves to the next business day.
Local & Destination-Based Tax Sourcing
Washington uses destination-based sourcing for local sales tax—meaning tax rates are based on the delivery location, not the seller’s address. If you use items in Washington without paying sales tax, you must also report use tax.
Penalties for Late Filing
Late returns incur penalties based on how overdue they are:
- 1–30 days late – 9% penalty.
- 31–60 days late – 19% penalty.
- 61+ days late – 29% penalty.
Filing on time—even with a zero return—is critical to avoid compounding penalties and interest.
Special Scenarios Businesses Miss
While most Washington businesses understand basic sales tax rules, certain situations often create compliance gaps. Missing these can lead to penalties or unexpected tax liabilities.
Marketplace Sellers
If you sell through a marketplace facilitator (e.g., Amazon, Etsy), the facilitator must collect and remit sales tax on your behalf. However, you may still owe B&O tax on those sales and must report them on your Combined Excise Tax Return.
Contractors
Contractors face specific reseller permit limitations. You can use a reseller permit to buy materials for resale, but items incorporated into real property are generally taxable, triggering use tax obligations.
Out-of-State Sellers with Washington Nexus
Even without a physical presence, you must register if you exceed $100,000 in gross receipts from Washington customers in the current or prior calendar year. This applies to remote sellers, including those shipping from other states.
By understanding these less obvious scenarios, businesses can avoid costly compliance mistakes and ensure their tax strategy covers all potential exposures.
Common Pitfalls & How to Avoid Them
Even seasoned Washington businesses can make avoidable mistakes with sales tax compliance. Being aware of these common pitfalls helps prevent penalties and administrative headaches.
Confusing a Reseller Permit with Sales Tax Registration
A reseller permit allows you to buy goods for resale without paying sales tax. It does not replace registering for sales tax with the Department of Revenue (DOR).
Letting Your Reseller Permit Lapse
Some businesses—especially contractors, new businesses, or non-filers—receive 2-year permits instead of the standard 4 years. Missing the renewal window means paying sales tax on purchases until reinstated.
Missing the 25th Filing Deadline
Monthly filers must submit returns by the 25th of the following month. Late filing or failing to submit zero returns triggers penalties and interest.
Not Closing Your Account When Business Stops
If you stop selling but don’t formally close your account, the DOR continues to expect returns and may issue delinquency notices.
Avoiding these mistakes keeps your tax compliance clean and stress-free.
How to Close or Change Your Registration
When your business closes or changes ownership, you must formally update your registration to avoid unnecessary tax notices.
Closing a Registration
- File your final Combined Excise Tax Return.
- Log in to My DOR and submit a business closure request .
Changing Your Registration
- Some updates (e.g., address, trade name) don’t require a new UBI.
- Major changes, such as entity type, may require a new UBI.
Hands Off Sales Tax: Your One-Stop Compliance Partner
Navigating Washington’s layered sales tax requirements—retail sales tax, B&O tax, use tax, reseller permits, and local surtaxes—can be overwhelming. Hands Off Sales Tax (HOST) provides end-to-end compliance support so you can focus on running your business while staying fully aligned with state regulations.
Streamlined Registration & Filing
HOST helps you register with the Washington Department of Revenue, obtain your reseller permit if eligible, and set up your My DOR account. Once active, they handle ongoing sales, use, and B&O tax filings to ensure you meet every deadline.
Comprehensive Compliance Services
- Nexus analysis to identify multi-state tax obligations.
- Permit and license applications across all relevant jurisdictions.
- Combined Excise Tax Return preparation with correct local tax sourcing.
- Audit defense and support in responding to WA DOR inquiries.
- VDAs for disclosing past liabilities on favorable terms.
Technology-Driven Tools
With HOST’s ResaleCertify platform, you can generate and store valid resale certificates in minutes, ensuring vendor acceptance and audit readiness.
From first registration to ongoing compliance, HOST ensures your Washington sales tax obligations are met—accurately, on time, and stress-free.
Staying Compliant in Washington Is Simpler Than You Think
Securing a sales tax permit in Washington State is just the first step—ongoing compliance is where many businesses stumble. Between B&O tax, use tax, reseller permit renewals, and local option rates, the details can easily pile up. That’s why partnering with Hands Off Sales Tax (HOST) gives you the confidence to operate without second-guessing your filings. Their expert team and ResaleCertify tool keep you organized, audit-ready, and penalty-free. If you want to protect your bottom line while staying compliant, HOST is your go-to partner.
Frequently Asked Questions
1. How much does it cost to get a Washington State sales tax permit?
There is no separate fee for the sales tax registration itself, but the Business License application through the BLS generally costs $90 plus applicable endorsements.
2. Do I need a separate permit for each business location?
No. One registration covers all Washington locations under the same UBI, but you must list each location with the DOR.
3. How often do I renew my reseller permit?
Most businesses renew every four years, though some renew every two years based on DOR criteria.
4. Do I still file returns if I had no sales?
Yes. You must file a zero return to avoid penalties.
5. Can I transfer my sales tax permit to a new business owner?
No. A change in ownership or entity type generally requires a new UBI and registration.
