WSR 08-14-147



[ Filed July 1, 2008, 2:19 p.m. ]


ETA 2041.04.246

Direct Seller's Use of the Internet, Mail Orders, Direct Calls, etc.

RCW 82.04.423 provides a business and occupation (B&O) tax exemption for wholesale and retail sales by certain out-of-state businesses that make sales in this state exclusively to or through a "direct seller's representative." This exemption is often referred to as the "direct seller's exemption" and the person claiming the exemption is referred to as the "direct seller." This exemption is limited to the B&O tax and does not extend to the retail sales tax.

This excise tax advisory (ETA) discusses the use of the internet, mail orders, direct calls, and other methods used by direct sellers to make sales directly to customers in this state. The ETA explains when these methods satisfy or fail to satisfy the statutory requirement that the direct seller make "sales in this state exclusively to or through a direct seller's representative."

A copy of this document is available via the internet at, or a request for a copy may be directed to Roseanna Hodson, Interpretations and Technical Advice Division, P.O. Box 47453, Olympia, WA 98504-7453, phone (360) 570-6119, fax (360) 586-0127.

Alan R. Lynn

Rules Coordinator

Washington State Code Reviser's Office