WA State Destination-based Sales Tax
Intended for Washington State based merchants who are required to charge and pay taxes under the specific tax rules in that state.
Our WA State Tax plugin will calculate your tax tables automatically for orders shipping to (and from) Washington state.
Information on transitioning to Destination-based Sales Tax for Online Sellers using Shopping Carts
The Department of Revenue recognizes that sellers using online shopping carts face unique challenges to change to destination-based sales tax. Some shopping carts have limited capabilities in calculating sales tax.
With this issue in mind, the Department of Revenue has developed a number of tax rate tools to help businesses with this change. These tools include the Washington Sales Tax Rate Library (WSRL) source code that provides a sales tax rate lookup using the Department of Revenue's address and rate download files. Its purpose is to provide a look up tool for tax rates using their web service.
Shopping cart software like 3dcart have developed custom web applications for the rate lookup service thats directly into your Online Store.
The WA State Department of Revenue’s expectation is that sellers will do their best to determine the correct tax rates to collect and to report the sales to the correct jurisdictions when filing their tax returns. If the sales tax collection method used results in the over- or under-collecting of tax, sellers are still required to remit all tax to the Department of Revenue, or if requested, refund the over-collected tax to the customer.
Assistance for Small Businesses
Please note, small businesses that incur costs in changing to a destination-based system may qualify for up to $1,000 in tax credits to help offset these costs. Alternatively, they may qualify to receive up to two years of subsidized CSP service. To qualify, a business must have less than $500,000 gross income from Washington sales in 2008, at least 5% of taxable sales income from deliveries, and at least 1% of taxable sales income from deliveries outside the primary taxing jurisdiction. Contact WA Department of Revenue for details, http://dor.wa.gov.