• Washington State’s New Reseller Permit System Begins January 1, 2010
  • December 3, 2009 | Author: Brenda S. Molner
  • Law Firm: Ater Wynne LLP - Seattle Office
  • Currently Washington businesses that purchase items for resale may self-issue resale certificates to avoid paying sales tax.  Beginning January 1, 2010 reseller permits issued by the Washington State Department of Revenue ("DOR") will be required in order to purchase items at wholesale and avoid sales tax.  The new system was put in place to reduce non compliance with sales tax regulations.  If you make wholesale purchases in Washington, you can apply for a reseller permit by going to http://dor.wa.gov/resellerpermit.  You may either print an application, complete it and fax or mail to to DOR or, if your business is registered with My Account at www.dor.wa.gov, you may apply on-line.

    Businesses registered with the DOR before January 1, 2009, may obtain a reseller permit that is valid for four years.  Businesses registered with the DOR on or after January 1, 2009, may obtain a permit valid for two years that can be renewed for four years.  Permits for the construction industry are valid for twelve (12) months.  Qualifying contractors must reapply each year and provide information about materials and contract labor purchases.

    Without a reseller permit, businesses will have to pay sales tax on purchases made for resale and thereafter go through a cumbersome process to obtain a rebate for the sales taxes paid.  Businesses making purchases for resale in Washington are encouraged to apply for a reseller permit as soon as possible in order to obtain their reseller permit before the end of the year.