"eBay handles it" is exactly the advice that gets a Washington seller into trouble.

The Bottom Line for Washington eBay Sellers

Washington is the state where the common advice is most likely to be wrong. eBay's collection genuinely relieves you of collecting Washington sales tax yourself, but the state's Business & Occupation tax is a different, gross-receipts-based levy with its own registration duty, and it counts marketplace-facilitated sales toward that duty explicitly. An LLC doesn't change either fact; it changes who's exposed if the B&O registration gets missed.

Washington's Department of Revenue states this without ambiguity: sellers whose sales all run through a marketplace facilitator don't need to collect and submit retail sales tax themselves, but they will still file and pay B&O and other taxes once they meet a registration threshold, and that threshold is calculated using all retail sales to Washington customers, including sales made through a facilitator. This is a single, unified dollar figure that triggers both the sales-tax and B&O registration questions together, not two separate tests moving independently, and marketplace-facilitated sales are explicitly folded into it. A seller who reads only the sales-tax relief and stops there's missing the half of Washington's rule that actually creates a filing obligation.

Whether you need your own Washington registration depends on the rest of your business: The seller never has to collect/remit RETAIL SALES TAX on eBay-facilitated sales if it has proof the facilitator is doing so. But Washington's B&O tax is a separate gross-receipts tax on the seller, and registration IS required once the seller's combined gross receipts sourced to Washington -- INCLUDING marketplace-facilitated sales -- exceed $100,000 in the current or prior year, or if the seller has physical presence/is organized or commercially domiciled in Washington; below that combined threshold and with no physical presence, no registration is required. Your eBay sales count toward Washington's $100,000 threshold, so marketplace volume alone can push you over it. Washington uses the federal reporting threshold, so eBay issues a 1099-K once you pass $20,000 and 200 transactions.

eBay Collects Washington Sales Tax. What Is Still Yours?

Whether you need your own Washington registration depends on the rest of your business: The seller never has to collect/remit RETAIL SALES TAX on eBay-facilitated sales if it has proof the facilitator is doing so. But Washington's B&O tax is a separate gross-receipts tax on the seller, and registration IS required once the seller's combined gross receipts sourced to Washington -- INCLUDING marketplace-facilitated sales -- exceed $100,000 in the current or prior year, or if the seller has physical presence/is organized or commercially domiciled in Washington; below that combined threshold and with no physical presence, no registration is required.

Washington's registration rule is genuinely two-track, and conflating them is the mistake this page exists to prevent. Retail sales tax collection is relieved once you've proof the marketplace facilitator is collecting on your behalf. That part of the common advice is accurate. But registration itself, for B&O reporting purposes, is required once your combined gross receipts sourced to Washington, including marketplace-facilitated sales, cross the state's threshold in the current or prior year, or if you've physical presence in Washington regardless of revenue. A seller relying purely on eBay's collection and assuming that means no registration at all is applying only half of Washington's actual rule.

Do Your eBay Sales Count Toward Washington's Nexus Test?

Your eBay sales count toward Washington's $100,000 threshold, so marketplace volume alone can push you over it.

Washington's Department of Revenue confirms this is a single combined-receipts test, not separate sales-tax and B&O thresholds: the same dollar figure that triggers sales-tax registration also triggers B&O registration, calculated using all Washington income across retailing, wholesaling, and service activity, not narrowly limited to retail sales. The Department's own guidance is explicit that this includes sales made through a facilitator, through your own website, or otherwise, and even includes exempt sales in the count. Washington uses no separate transaction-count test; the dollar figure, measured on combined receipts including your eBay volume, is the whole test.

Washington's 1099-K Threshold

Washington uses the federal reporting threshold, so eBay issues a 1099-K once you pass $20,000 and 200 transactions.

Washington has no corporate income tax and no personal income tax through 2027, and its capital gains tax, the one current Washington levy that resembles an income tax, is self-reported by the individual rather than fed by third-party payment data. There's no Washington statute requiring a duplicate state 1099-K filing, and Washington doesn't participate in the IRS's interstate data-sharing program for 1099 forms. Whatever triggers eBay to send you a federal 1099-K is the only trigger that matters here. There's no separate Washington figure layered on top.

Buying Inventory to Resell in Washington

Washington accepts a resale certificate issued by another state, so you can buy inventory for resale without registering here first.

CORRECTS the commonly-reported position. WA DOR's own current guidance draws a nexus-based distinction it does not usually get credit for: 'Businesses that are required to be registered with the Department' must use a Reseller Permit or the SST Exemption Certificate WITH a WA reseller permit number -- but 'Businesses not required to be registered with the Department may use a: Streamlined Sales Tax (SST) Exemption Certificate [or] Uniform Sales & Use Tax Resale Certificate - Multijurisdiction [MTC form]' with no WA permit at all. A typical eBay reseller with no physical presence/nexus in WA falls in the second, unregistered bucket and can buy tax-free in WA using an out-of-state SST or MTC uniform certificate without ever obtaining a WA reseller permit. The 'WA refuses out-of-state certificates' claim is only true for sellers who ARE required to register in WA (e.g., have WA nexus) -- for them, a WA reseller permit is genuinely required.

This corrects a commonly repeated claim. Washington is often described as refusing out-of-state resale certificates outright, but the Department's own current guidance draws a narrower, nexus-based line: businesses required to register with Washington must use a Washington reseller permit, but businesses not required to register may use a Streamlined Sales Tax exemption certificate or the multistate Uniform Sales & Use Tax Resale Certificate instead, with no Washington permit at all. A typical eBay reseller with no Washington nexus falls into the second, unregistered bucket and can buy tax-free here using an out-of-state multistate certificate. On secondhand goods, Washington's dealer statute reaches general resale of used personal property broadly, but licensing is administered city-by-city and county-by-county, not through one statewide license.

Washington leaves second-hand dealer licensing to cities and counties, so check your own. Washington's law on pawnbrokers and secondhand dealers, which we read section by section on the state's official code site, defines 'secondhand dealer' broadly to include general resale of used personal property (not just precious metals or pawn), and imposes statewide recordkeeping and reporting duties (keeping records, reporting to the chief law enforcement officer, and keeping records available for inspection). However, the law's express licensing provision, titled 'Precious metal dealers -- Licensure required', covers precious-metal dealers only and provides that 'No secondhand precious metal dealer doing business in this state may operate a business without first obtaining a business license from the local government in which the business is situated'. That is a LOCAL government license, not a state one. Another section of the same law, titled 'Regulation by political subdivisions', confirms Washington cities and counties keep the power to license and regulate. We found no Washington Department of Licensing (state agency) page for a statewide 'secondhand dealer license', and individual counties and cities (e.g., Pierce County) run their own secondhand-dealer license applications that refer to this law. Net effect: Washington law reaches general resale of used goods, but licensing is handled county by county and city by city, not through one statewide license.

The Washington Tax eBay Does Not Handle

Washington levies Business & Occupation (B&O) Tax, which can still reach you even though eBay handles the sales tax: A marketplace-only seller must register and file Washington B&O tax returns once their combined gross receipts sourced or attributed to Washington exceed $100,000 in the current or prior calendar year, or if they have physical presence nexus in Washington. Whichever comes first. The Department of Revenue's own marketplace-sellers page confirms marketplace facilitator collection only relieves retail sales tax collection, not B&O: sellers 'will still file and pay [their] B&O and other taxes if [they] meet a registration threshold.' The $100,000 threshold is calculated on all Washington-sourced gross income (not just retail sales), and the Department's 2019 rule-change announcement and its out-of-state-business nexus guide both confirm the $100,000 figure and that it covers 'all Washington income, including retailing, wholesaling, service and other activities.'

Setting Up to Sell on eBay from Washington

1. 1

   Don't stop at 'eBay collects my sales tax'

   That's true and it's also only half the picture. Washington's B&O tax has its own registration threshold that counts your eBay sales, and it doesn't go away just because sales-tax collection is handled.

2. 2

   Calculate your combined Washington gross receipts including eBay sales

   Washington's B&O registration threshold is measured on combined receipts across every channel, explicitly including marketplace-facilitated sales, not narrowly on your direct sales alone.

3. 3

   Register for B&O once you cross the threshold or have physical presence

   Either condition triggers registration independently. A seller with no Washington office but high combined eBay volume can still cross the threshold on receipts alone.

4. 4

   Use a multistate resale certificate if you've no Washington nexus

   Washington's own current guidance confirms an unregistered, no-nexus reseller can use a Streamlined or multistate certificate here, a Washington-specific reseller permit is only required for sellers who must register.

5. 5

   Form the LLC before your combined receipts cross the threshold

   Washington's B&O exposure grows with your combined Washington sales regardless of entity type. Filing the LLC before that threshold is crossed is simpler than doing it after a registration duty already exists.

Who to Ask in Washington

The Washington Department of Revenue administers both the sales-tax and B&O questions this page covers, and its Marketplace Fairness guidance pages address the marketplace-seller scenario directly. Because secondhand-dealer licensing in Washington runs through individual cities and counties rather than one state office, check with your specific local government if that applies to your inventory. The Washington Secretary of State's Corporations Division is the office that forms and maintains your LLC.

Sources

• dor.wa.gov/taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/marketplace-sellers
• dor.wa.gov/taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/remote-sellers
• dor.wa.gov/forms-publications
• dor.wa.gov/taxes-rates/capital-gains-tax
• irs.gov/pub/irs-pdf/p1220.pdf
• dor.wa.gov/taxes-rates/retail-sales-tax/reseller-permits/approved-exemption-certificates-wholesale-purchases
• app.leg.wa.gov/rcw/default.aspx?cite=19.60.010Washington statute: RCW 19.60.010 (definitions)
• app.leg.wa.gov/rcw/default.aspx?cite=19.60&full=trueWashington statute: RCW Chapter 19.60 (Pawnbrokers and Secondhand Dealers)
• dor.wa.gov/education/industry-guides/out-state-businesses-reporting-thresholds-and-nexus
• dor.wa.gov/about/news-releases/2019/new-law-updates-washington-state-tax-requirements-out-state-businesses
• irs.gov/instructions/i1099k
• Washington statute: RCW 19.60.020 (recordkeeping)
• Washington statute: RCW 19.60.040 (report to chief law enforcement officer)
• Washington statute: RCW 19.60.055 (retention and inspection)
• Washington statute: RCW 19.60.075 (regulation by political subdivisions)
• Washington statute: RCW 19.60.077 (precious metal dealers, licensure required)

Federal 1099-K threshold: IRC § 6050W(e), as amended by § 70432(a) of the One, Big, Beautiful Bill Act (P.L. 119-21, July 4, 2025). A third-party settlement organization such as eBay must file Form 1099-K only if BOTH tests are met for the calendar year: gross payments exceed $20,000 AND the number of transactions exceeds 200. These are the figures for tax year 2026. There is no forward phase-in: § 70432(a) takes effect "as if included in section 9674 of the American Rescue Plan Act," so the same $20,000 / 200 figures apply retroactively to calendar years after 2021 (tax years 2022 through 2026 alike). The $600 threshold enacted by ARPA § 9674 (P.L. 117-2) was repealed before it operated, and the IRS transition-relief thresholds previously announced for 2024 and 2025 are superseded. A platform may issue a 1099-K below these figures, and a state may set a lower TPSO threshold, in which case a seller can receive a 1099-K without meeting the federal test.. Verified 2026-08-08.