Skip to main content
The sale of goods through a consignment arrangement is taxed in the following manner:
A business making retail consignment sales must collect sales tax. Generally, consignment sellers remit sales tax directly to the Department (on behalf of the owner of the consigned goods). Examples of items sold on consignment at convenience stores and gas stations include crafted items such as handmade greeting cards and handmade jewelry.
“Consignee” (or selling agent) is one who has either actual or constructive possession of tangible personal property (although someone else actually owns that property), or one calling for bids on the property.
“Constructive possession” means possession of the power to pass title to tangible personal property of others. WAC 458-20-159
Reporting instructions are provided below:
Consignee selling in the name of the owner
- Report consignment sales under the Retailing B&O tax classification. A deduction may be taken from retailing B&O tax, if the consignee segregates such sales income and maintains records in accordance with WAC 458-20-159. The deduction is itemized on the deduction detail page (0215 – Consignment Sales).
- Report consignment sales under the Retail Sales tax classification. Generally, the consignee is responsible for remitting the sales tax to the Department. However, if the owner of the goods is registered with the Department and otherwise reports sales tax, the consignee can remit the sales tax to the owner to report. In this case, a deduction would be allowed under retail sales tax. The deduction is itemized on the deduction detail page (0199 – Other (write in: Sales Tax Remitted to Owner).
- Report commissions earned from consignment sales under Service & Other Activities B&O tax classification. RCW 82.04.290
Consignee that sells in their own name
- Report consignment sales under the Retailing B&O tax classification.
For tax reporting instructions for the owner of the goods, see our Special Notice - Tax Reporting for Consignment Sales.
