An Important Scrap of Information for Direct Sales Independent Consultants
- Sales Tax News
- Feb 26, 2015 | Gail Cole
“A man’s life in these parts often depends on a mere scrap of information.” Joe, A Fistful of Dollars
Emerging businesses should head the wise words of Joe in spaghetti western A Fistful of Dollars. The success or failure of a growing business may well depend on a mere scrap of information. Know it and your business can thrive. Ignore it and it could cost you big.
This is particularly true for direct sales independent consultants and multilevel organizations.
As explained by the Washington State Department of Revenue:
“As an independent consultant, you may need to register with Revenue depending on if your organization has a tax collection agreement with Revenue or if you have other business activities.”
Direct sales independent consultants must register with the Department of Revenue in the following situations:
- When the direct selling organization does not have a tax collection agreement and the direct seller
- Is required to collect retail sales tax, regardless of the amount, or
- Has a yearly gross income of $12,000 or more.
- When the direct selling organization has a tax collection agreement to collect and remit retail sales tax on behalf of consultants and the direct seller
- Has yearly retail sales of $89,172 or more, or
- Has a yearly commission or $56,000 or more.
When the direct selling organization has a tax collection agreement to report both business and occupation (B&O) and retail sales taxes on behalf of consultants, direct selling consultants don’t have to register with the Department of Revenue unless other business activities require registration. Additional information.