The State of Washington has carved out a nexus safe-harbor for out-of-state representatives attending qualifying trade shows/conventions.
Effective July 1, 2016, for purposes of Washington’s Sales and Use Tax, and also the Business and Occupation (B&O) Tax, the Washington Department of Revenue may not make a determination of nexus based solely on the attendance or participation of one or more representatives at a single trade convention per year in Washington.
So, what does this mean for businesses? Without more, businesses that attend/exhibit (but not sell) at only one trade convention, not marketed to the general public, per year, will not be deemed to have a registration and a tax reporting requirement for purposes of Washington Sales and Use, and B&O tax.
Click here to read Washington’s Special Notice.
Or, click here to view Eide Bailly’s “Understanding Nexus” video.