We are an AZ based corporation. We do not have a nexus in Washington state. The tax "expert" at our outside
Washington state sales taxes
Answers
I have never heard of having to collect and pay sales tax without having nexus in a state. States are desperate for revenue, however, and their efforts to get more will be aggressive and insatiable. So, I'd suggest that you call them directly and inquire about this "supposed" new requirement.
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I suggest you contact a tax expert at a CPA firm in Washington. One possible contact is James Hunt, Director of State and Local Taxes at the Seattle office of RSM McGladrey. It's very important to get a correct answer because the potential liability keeps increaseing there is no statute of limitations for an unfiled return.
Call John Murphy at Mohler, Nixon and Williams (https://www.proformative.com/provider/mohler-nixon-williams)before you do that! I am a many-time
States are trying to tax all commerce going to their citizens and businesses and are simply creating new tax laws to do it. The old idea of "must have nexus" is flying out the window as fast as state legislatures can change it, and all 50 states have different requirements.
And if you do call the state to get clarification, for Pete's sake don't give them your real name or real company name. I'm not kidding. If they get wind of your company and have any inkling that you should be paying them state tax, you can bet they will keep a close eye out for you!
I'm a controller and live and work in WA State. This issue is something that has not been widely communicated, but anyone selling goods in or out of SEVERAL states should begin to address.
The destination based sales tax requirement mainly addresses in state sales situations. However, the government made this change in order to comply with the larger initiative of "Streamlined Sales Tax Reporting". There are currently 19 states that are part of this project that agree to collect sales tax within their jurisdictions. The short of it is that although you may have no direct nexus, you will need to charge sales tax for sales made within these states.
By registering with the SSTP, your company will obtain one ID and be able to handle the sales tax administration WITHOUT having to register as a foreign corporation in every state.
Yes, this cross-border sales tax issue is a pain in the behind, but unfortunately not going away. Several East Coast states have reciprosity (sp?) agreements in place much like this initiative, but I personally feel it won't be long before the entire nation is covered. Each state government is looking for any way they can to raise additional revenues...
Here are some links to get more information. Will be using myself, having recently stated with a company that appears not to have focused on these changes either.
Destination Based Sales Tax Info for Washington State
http://dor.wa.gov/Content/FindTaxesAndRates/RetailSalesTax/DestinationBased/MoreSST.aspx
Streamlined Sales Tax Project FAQ Section
https://www.sstregister.org/sellers/SellerFAQs.Aspx#faq3
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If anyone would like to carry on the conversation directly, please feel free to send me a request.
Respectfully,
Paul