The Washington Department of Revenue is making big changes to their online sales tax filing system, My DOR. Because of the changes, Washington sales tax filers will have no access to file sales tax at My DOR between March 1, 2018 and March 19, 2018.
Fortunately, there is good news for Washington sales tax filers trying to file your February 2018 return!
The Washington Department of Revenue is giving sales tax filers until April 5, 2018 to file your February 2018 monthly Washington Sales & Use Tax return.
In other words, monthly Washington sales tax filers who would normally have a sales tax due date on March 25, 2018 now have until April 5, 2018 to file their February return. (More precisely, the original sales tax filing due date was March 26, 2018 this year, since the 25th falls on a Sunday.)
Keep in mind the extension is only a one-time deal for this month. Sadly, this doesn’t mean Washington taxpayers get to enjoy a permanent extension on time to file!
Why is Washington making changes to their online sales tax system?
One reason Washington is making changes is due to their new “Marketplace Facilitator Law.” With this law, online marketplaces like Amazon, Walmart and Etsy – and not the 3rd party sellers who sell products on these marketplaces – are required to collect and remit sales tax on all sales.
This has led to the need to revamp Washington’s sales tax filing forms, especially for 3rd party marketplace sellers.
As for right now, FBA sellers and other 3rd party marketplace sellers are following convoluted instructions to fill out the Washington sales tax filing. They are supposed to determine how much sales tax Amazon, Walmart and the other marketplaces collected on their behalf, then add that amount as a “Deduction” under the “Other” category, then label it “Sales tax collected by 3rd party.” This is not at all intuitive, and we’ve been helping confused sellers figure this system out all year.
After the update, Washington tax filers will now choose the option “Retail Sales Tax Collected by Facilitator” and then enter the amount of sales tax that a marketplace collected on your behalf in the “RST Collected by Facilitator” box. (In this case, “Facilitator” is the marketplace that collects sales tax on your behalf.)
Or, if you’d rather not deal with Washington sales tax at all, you can enroll in TaxJar AutoFile and let us take care of your sales tax filing for you.
To read more about what Washington’s Marketplace Facilitator law means for online sellers, check out our “What Amazon FBA Sellers Need to Know about Washington Sales Tax After January 2018” blog post.
Have questions or something to say about the Washington sales tax filing extension? Start the conversation in the comments!