Consumer use tax on Marketplace purchases for Washington residents

Have you purchased items without paying sales tax? (eBay, for example)

If you are a Washington resident, use tax is due if you purchased goods without paying sales tax.

Under the Marketplace Fairness legislation (HB 2163), certain marketplace facilitators and remote sellers that do not collect Washington’s sales tax must provide an annual report to both Washington consumers and the Department of Revenue. The report shows the total untaxed purchases Washington consumers made during the prior calendar year. Facilitators and sellers must send this report by February 28 of the following year.

For more information, see the Marketplace Fairness webpage on the WA Department of Revenue web site or this article that gives more of the background for the changes.

How do I pay use tax?

You can pay the use tax due on untaxed purchases by filing a Consumer Use Tax Return using one of the following methods of reporting:

By mail, using the Consumer Use Tax Return

(Fill-in form, print and mail with check)

Online, using the e-file tax return

The tax rate is generally based on your home address. Use the Department of Revenue’s Tax Rate Lookup Tool or Tax Rate Lookup App to find the tax rate and location code for your address. You will need the location code for your tax return.

Note: You do not need to:

Itemize purchases under $1,000. You should report these purchases in a lump sum.

Describe or identify what you purchased. The purchase amount and a generic description is sufficient.

When is use tax due?

You can pay use tax anytime (pay as you go), but you must pay by April 1 of the following year to avoid interest and penalties.

What exemptions are available?

Common exemptions include:

Non-prepared food (prepared foods are subject to tax)

Prescription drugs

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