---
title: "Do I need a Washington business license to sell on eBay or Poshmark?"
description: "Yes if you're in Washington: marketplace sellers with physical presence register and report B&O tax, though the marketplace can collect the sales tax."
canonical: https://resellerindex.com/tax/sellers-permit/washington/
last_updated: 2026-10-23
publisher: "The Reseller Index"
---

[Taxes](https://resellerindex.com/tax/) / [Seller's permits by state](https://resellerindex.com/tax/sellers-permit/) / Washington

# Do I need a seller's permit to sell on eBay or Poshmark in Washington?

Yes if you're based in Washington: the Department of Revenue says a marketplace seller with physical presence must register to report B&O tax from the day that presence begins, with no $100,000 threshold to meet, and doesn't have to collect sales tax on facilitated sales if it has documentation that the facilitator collects and reports it. Selling direct (your own site, a booth, a shop) falls under the same business license and tax registration, and you collect sales tax on those sales; opening a new business carries a $50 processing fee plus any endorsement fees, and a separate reseller permit lets you buy inventory without paying sales tax.

Washington calls it a business license and tax registration (with a reseller permit for buying inventory), issued by the Washington State Department of Revenue.

General information, not tax or legal advice. Check with a tax professional about your own situation.

Checked against the official pages listed below on Oct 23, 2026.

## Washington in short

- **Sell only on marketplaces that collect the tax:**
  Yes: the state says to register
- **Also sell direct (own site, Facebook, flea market):**
  Yes: the state says to register; $50 fee
- **Resale certificate:**
  Washington reseller permit
- **Garage and occasional sales:**
  Exempt
- **Where to register:**
  [Business Licensing Service, Business License Application](https://dor.wa.gov/open-business/apply-business-license)

## If you sell only on eBay, Poshmark and other marketplaces

Marketplace sellers with physical presence in Washington must register to report B&O tax and collect and report sales tax from the date that presence begins, and don't need to meet the $100,000 threshold. A marketplace seller doesn't have to collect sales tax on sales made through a facilitator if it has documentation that the facilitator collects and reports it, but it still reports and pays B&O tax even if all its sales go through facilitators. A remote marketplace seller registers once it has more than $100,000 of combined gross receipts sourced or attributed to Washington, marketplace sales included, in the current or prior year.

The rule: Washington Department of Revenue, Marketplace sellers (citing RCW 82.04.067 and RCW 82.08.052).

> "Marketplace sellers who meet Washington nexus criteria are required to report and pay B&O tax, even if sales of products or services are only made through marketplace facilitator(s)."

Washington State Department of Revenue, [Marketplace Fairness - Leveling The Playing Field: Marketplace sellers](https://dor.wa.gov/taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/marketplace-sellers), Marketplace sellers: Is a marketplace seller required to report and pay B&O tax?

> "Therefore, if you have physical presence, you do not need to meet the $100,000 threshold to have nexus in Washington."

Washington State Department of Revenue, [Marketplace Fairness - Leveling The Playing Field: Marketplace sellers](https://dor.wa.gov/taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/marketplace-sellers), Marketplace sellers with physical presence nexus

Washington businesses owe business and occupation (B&O) tax on gross income and collect retail sales tax: a 6.5% state rate plus a local rate that varies by where the buyer receives the goods. Marketplace facilitators collect sales tax on the sales they facilitate and must give each seller a monthly report of its Washington sales by the 15th of the following month.

Sources: [Marketplace Fairness - Leveling The Playing Field: Marketplace sellers](https://dor.wa.gov/taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/marketplace-sellers); [Retail sales tax](https://dor.wa.gov/taxes-rates/retail-sales-tax).

## If you also sell direct: your own site, Facebook, flea markets, consignment

You register with the Department and get a business license if, among other conditions, you sell a product that requires collecting sales tax, your gross income is $12,000 a year or more, or you do business under a name other than your full legal name. On the return you report all Washington retail sales and deduct the sales a facilitator collected on.

- **Fee:**
  $50 processing fee to open a new business (its first location), plus any city, county or state endorsement and trade name fees; adding another location is $0.
- **Renewal:**
  Licenses are renewed by the expiration date printed on them, with a $5 annual renewal processing fee plus endorsement fees; renewals received late are charged a penalty of half of the endorsement fee or up to $150.
- **Register:**
  [Business Licensing Service, Business License Application](https://dor.wa.gov/open-business/apply-business-license)

> "Register with the Department of Revenue and get a business license if you meet any of the following conditions:"

Washington State Department of Revenue, [Apply for a business license](https://dor.wa.gov/open-business/apply-business-license), Registration requirements

> "A non-refundable Business License Application processing fee is required for each application received in addition to applicable endorsement or trade name fees."

Washington State Department of Revenue, [Variable business license processing fees](https://dor.wa.gov/open-business/apply-business-license/variable-business-license-processing-fees)

Sources: [Apply for a business license](https://dor.wa.gov/open-business/apply-business-license); [Variable business license processing fees](https://dor.wa.gov/open-business/apply-business-license/variable-business-license-processing-fees); [Business licensing and renewals FAQs](https://dor.wa.gov/open-business/business-licensing-and-renewals-faqs); [Marketplace Fairness - Leveling The Playing Field: Marketplace sellers](https://dor.wa.gov/taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/marketplace-sellers).

## Resale certificate: buying inventory without paying sales tax

- **The form:**
  [Washington reseller permit](https://dor.wa.gov/taxes-rates/retail-sales-tax/reseller-permits)
- **Do you need your own permit to give one?**
  Yes: the state ties the certificate to the buyer's own permit or account number

The State issues reseller permits that let retailers and wholesalers buy items for resale without paying sales tax; to get one you need the appropriate Washington business licenses and endorsements. Permits are generally valid for four years (two in some cases, such as a business open less than 12 months), and can only be used for items you resell in the regular course of business, not supplies or equipment.

Also accepted: Sellers may also accept other approved exemption certificates from customers if properly completed and signed.

### Thrift stores, estate sales and yard sales

The state pages we checked don't say anything specific about using a resale certificate at a thrift store, estate sale or yard sale. A certificate is given to a seller who would otherwise charge you tax, so whether a particular store takes one is between you and that seller; ask before you buy.

### Misusing a certificate

Anyone found using a reseller permit inappropriately will owe the tax due and a 50% penalty, even if no fraud was intended, and the permit may be revoked.

> "Anyone found using a permit inappropriately will owe the tax due and a 50% penalty—even if there was no fraud intended."

Washington State Department of Revenue, [Reseller permits](https://dor.wa.gov/taxes-rates/retail-sales-tax/reseller-permits), Buyers using a reseller permit

Sources: [Reseller permits](https://dor.wa.gov/taxes-rates/retail-sales-tax/reseller-permits).

## Garage sales, yard sales and other occasional sales

Exempt. A casual or isolated sale is one made by a person not engaged in selling that type of property; B&O tax doesn't apply to it, and people not required to be registered don't collect retail sales tax on it. A person who is required to be registered collects sales tax on its casual or isolated retail sales and reports them, and routine or continuous sales are not casual.

The rule: [WAC 458-20-106; RCW 82.04.040](https://app.leg.wa.gov/WAC/default.aspx?cite=458-20-106).

> "Persons not engaged in any business activity, that is, persons not required to be registered under WAC 458-20-101, are not required to collect the retail sales tax upon casual or isolated sales."

Washington State Legislature, [WAC 458-20-106, Casual or isolated sales - Business reorganizations](https://app.leg.wa.gov/WAC/default.aspx?cite=458-20-106), Casual or isolated sales

Sources: [WAC 458-20-106, Casual or isolated sales - Business reorganizations](https://app.leg.wa.gov/WAC/default.aspx?cite=458-20-106); [Casual or isolated sales](https://dor.wa.gov/forms-publications/publications-subject/tax-topics/casual-or-isolated-sales).

## Worked examples

### The Department's own example: a Washington seller with website and marketplace sales

The Department's Example 3: a Washington business sells $10,000 through its website to Washington buyers, $5,000 to buyers out of state and $15,000 through a marketplace facilitator that collects the tax. It reports $30,000 under retailing B&O and retail sales tax, deducts $5,000 as interstate sales and $15,000 as Gross Sales Collected by Facilitator, and reports the $10,000 of direct Washington sales by location code. At the 6.5% state rate that is $650 of state sales tax collected on the direct sales, plus the local rate where each item was delivered.

### What reseller permit misuse costs

A business uses its reseller permit to buy $500 of shop supplies. At the 6.5% state rate alone the skipped tax is $32.50, and the Department's 50% penalty adds $16.25, for $48.75 before any local tax, whether or not fraud was intended.

### No reseller permit yet

A new seller buys a $300 lot to resell before its reseller permit arrives. The Department says it can pay the sales tax, then take a Taxable Amount for Tax Paid at Source deduction when it reports the sale of those items, or ask the Department for a refund.

## Edge cases and details

- Keeping a stock of inventory in Washington, including inventory held by a marketplace facilitator or another third party, is one of the activities the Department lists as establishing physical presence for a marketplace seller.
- Gross income for B&O is the full selling price, shipping and delivery charges included, and the Department says you may not deduct commissions or fees paid to a marketplace facilitator, even when they are listed separately.
- Marketplace facilitators must give sellers a monthly report of their Washington sales by the 15th of the following month; if it doesn't arrive on time, the seller may estimate its tax using a method the Department approves or requires.
- If a marketplace seller doesn't get documentation that the facilitator collects and reports the sales tax, the Department says it may be held liable for uncollected tax on those sales.
- A certified service provider that collects and reports retail sales tax for you may mean you don't collect it yourself, but the Department says you may still have to file an excise tax return for B&O and any other taxes.
- A reseller permit can't be used for items used in the business, such as supplies, equipment or tools, unless you are in the business of reselling or renting those items.
- People who hold themselves out to the public as selling a type of property aren't making casual sales of that property even if they sell it infrequently, under WAC 458-20-106.

## What to do

1. Based in Washington and selling on marketplaces: register through the Business Licensing Service, and keep each marketplace's monthly report and its documentation that it collects the sales tax for you.
2. Selling direct: sales tax is collected at the rate for the place the buyer receives the item; the Department's sales and use tax tools give the rate and location code.
3. Buying inventory: apply for a reseller permit once you hold your business license, and use it only for items you will resell.
4. Check with the Department or a tax professional about how the B&O tax and the registration rules apply to your own sales.

## Common questions

### Do I pay B&O tax on eBay sales in Washington?

The Department says marketplace sellers who meet Washington nexus criteria report and pay B&O tax even if all their sales go through marketplace facilitators, on gross income at the full selling price including shipping, without deducting the marketplace's fees.

### How much does a Washington business license cost?

The Department lists a $50 processing fee to open a new business, plus any city, county or state endorsement and trade name fees, and a $5 processing fee to renew each year plus endorsement fees.

### How long is a Washington reseller permit valid?

Generally four years, or two years in some cases, such as a business open less than 12 months or one that hasn't reported gross income in the last 12 months.

### Is a garage sale taxable in Washington?

WAC 458-20-106 says people not required to be registered don't collect retail sales tax on casual or isolated sales, and B&O tax doesn't apply to such sales.

## Related

- [Seller's permits by state: marketplace-only sellers, resale certificates and garage sales on one table](https://resellerindex.com/tax/sellers-permit/)
- [Washington: marketplace sales tax and 1099-K rules](https://resellerindex.com/tax/states/washington/)
- [Virginia: do you need a seller's permit?](https://resellerindex.com/tax/sellers-permit/virginia/)
- [West Virginia: do you need a seller's permit?](https://resellerindex.com/tax/sellers-permit/west-virginia/)
- [Form 1099-K for resellers: the federal test](https://resellerindex.com/guides/1099-k-for-resellers/)
- [Do eBay's fees apply to the sales tax a buyer pays?](https://resellerindex.com/guides/ebay-fees-on-sales-tax/)
- [Where each selling app keeps its sales report](https://resellerindex.com/guides/sales-reports-for-taxes/)

## General information, not tax or legal advice

This page summarizes Washington's own published pages, rules and statutes as read on Oct 23, 2026. It doesn't say whether you must register, what you should file or whether you owe tax: that turns on your own sales, where you sell and what you buy. Rules change. Check with a tax professional, or ask the Washington State Department of Revenue directly.

## Sources

Official pages this page is built from, with the day each was read.

- Washington State Department of Revenue: [Marketplace Fairness - Leveling The Playing Field: Marketplace sellers](https://dor.wa.gov/taxes-rates/retail-sales-tax/marketplace-fairness-leveling-playing-field/marketplace-sellers); read Oct 23, 2026. Physical presence sellers register and report B&O; no $100,000 test for them; documentation from facilitators; remote threshold; monthly reports; fees not deductible; Example 3.
- Washington State Department of Revenue: [Apply for a business license](https://dor.wa.gov/open-business/apply-business-license); read Oct 23, 2026. Registration conditions including $12,000 gross income; fee varies by purpose.
- Washington State Department of Revenue: [Variable business license processing fees](https://dor.wa.gov/open-business/apply-business-license/variable-business-license-processing-fees); read Oct 23, 2026. $50 to open a business; $0 for another location; $5 renewal processing; late penalty.
- Washington State Department of Revenue: [Business licensing and renewals FAQs](https://dor.wa.gov/open-business/business-licensing-and-renewals-faqs); read Oct 23, 2026. Application fee varies; renewal by expiration date; late penalty.
- Washington State Department of Revenue: [Reseller permits](https://dor.wa.gov/taxes-rates/retail-sales-tax/reseller-permits); read Oct 23, 2026. What permits allow; requirements; validity; misuse penalty; options without a permit.
- Washington State Department of Revenue: [Casual or isolated sales](https://dor.wa.gov/forms-publications/publications-subject/tax-topics/casual-or-isolated-sales); read Oct 23, 2026. Casual sale definition; B&O and sales tax treatment.
- Washington State Legislature: [WAC 458-20-106, Casual or isolated sales - Business reorganizations](https://app.leg.wa.gov/WAC/default.aspx?cite=458-20-106); read Oct 23, 2026. Persons not required to register don't collect on casual sales; holding out.
- Washington State Department of Revenue: [Retail sales tax](https://dor.wa.gov/taxes-rates/retail-sales-tax); read Oct 23, 2026. 6.5% state rate; local rate varies by delivery location; reseller permit for purchases for resale.

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