Out of state businesses reporting thresholds and nexus
Out of state businesses reporting thresholds and nexusUpdated April 2020
Starting Jan. 1, 2020, a business must register to report B&O tax and collect/submit applicable sales tax, if the business meets any of the following thresholds in the current or prior year:
- Has physical presence nexus in Washington.
- Has more than $100,000 in combined gross receipts sourced or attributed to Washington.
- Is organized or commercially domiciled in Washington.
These thresholds will apply to all Washington income, including retailing, wholesaling, service and other activities, and other apportionable activities.
How to register
To register, file a Business License Application. This application will register your business with the Department of Revenue and other state agencies. You will be issued a Unified Business Identifier (UBI)/Account ID when the application is processed. See our new business information after you have registered.
Many Washington cities and counties have licensing requirements and taxes on business activities. The Business Licensing Service offers more information on licensing requirements for many cities.
The department issues reseller permits to businesses that make wholesale purchases, including qualified contractors. The permits allow businesses to purchase items or services for resale in Washington without paying retail sales tax. For more information, see our Reseller permit page.
You may determine whether an out of state business needs to register with the Washington’s Secretary of State’s office by visiting their website.
Nexus for past periods
Washington’s nexus criteria have changed over the years. For an overview of the changes, see our summary chart of nexus and registration criteria.
- 2019
-
Change: Election and use tax notice and reporting eliminated
Change: 200 transaction threshold and click-through nexus eliminated
- 2018
-
Change: Wayfair
Change: Election and use tax notice and reporting
- 2017
- 2016
- 2015
-
Change: Economic nexus for wholesaling & click-through nexus
- 2014 - 2011
- 2010
-
Change: Economic nexus for service and apportionable activities
- 2009 and prior
-
Change: Physical presence only
Resources
What is physical presence nexus?
Remote sellers
Marketplace Fairness
Voluntary disclosure
Sourcing
Interstate and Foreign Sales (nexus)
RCW 82.04.067
WAC 458-20-193
WAC 458-20-194
Recordkeeping
RCW 82.32.070
WAC 458-20-254
Additional resources
Construction guide
Small Business Guidance (Business.wa.gov)
Streamlined sales tax
Streamlined Sales Tax Registration System
Employment Security
Unemployment Insurance
Status Unit
360-902-9360
Labor and Industries
Industrial Insurance & Contractors Bonding
Employer Services
360-902-4817
Contractors Bonding
360-902-6359
Business Licensing
360-705-6741