In this article:
Note: This material is specific to dispensary owners conducting sales through Fullscript with a financial address in Washington state.
If you make all of your retail sales through a marketplace facilitator, such as Fullscript, you don't need to collect and submit retail sales tax if you have proof that the facilitator is doing so on your behalf. You will still file and pay your B&O and other taxes if you meet a registration threshold. As outlined in Fullscript's terms of service, we collect and remit all retail sales tax to states orders are shipped.
You can find gross sales and return amounts, along with other financial figures needed to file your taxes, in the account activity and balance report and 1099-K Export report (if eligible). Go to your Reports page to download either of these reports.
Note: If you qualify for Form 1099-K, the 1099-K Export report will be accessible in January following the end of a tax year. This report reconciles your 1099-K amount (gross sales) to your net income.
Reporting Fullscript revenue on a Washington state sales tax return
We've put together a walkthrough to aid in filing your sales tax return through Washington state's Department of Revenue website. The example and figures used are purely illustrative. We highly recommend speaking to a tax professional to understand your tax obligations and how you need to complete your return.
Please refer to this webpage for a current and complete description of reporting requirements for Marketplace sellers in Washington state.
Step 1: Select taxes
Select the tax classifications that apply to your business. If you make retail sales through a marketplace facilitator, you don't need to collect and submit retail sales tax if you have proof that the facilitator is doing so on your behalf. You will still file and pay your B&O and other taxes.
As such, in the following example, we have selected:
- Business & Occupation: Retailing
- Sales and Use: Retail Sales
- Local Taxes: Local City and/or County Sales Tax
Note: The above classifications have been set solely for the purposes of illustrating a typical retail sales tax return; your business may not qualify or be limited to one or any of these tax classifications. Please direct tax classification questions to a tax professional.
Step 2: Business & occupation
For this example:
- The practitioner has $1000 in gross sales from Fullscript (marketplace facilitator) and no other revenue from other sources.
- The practitioner has $100 in returned sales from Fullscript.
Report the total Gross Amount (marketplace facilitator and direct sales) of Washington retail sales experienced over the filing period. For this example, this means we'll plug in the $1000 in gross sales from Fullscript.
Next, we'll append deductions by clicking on the deductions box. In this case, we have clicked the deductions tab and selected Advancements/ Reimbursements, Returns & Allowances adding the $100 in returned sales from Fullscript.
Claim a ‘No Local Activity’ deduction if you don't have B&O Nexus in Washington.
Step 3: State sales and use
Next, report your gross Washington retail sales. This will automatically appear in this section and can only be modified by returning to the B&O section (step 2).
Once again, click on the deductions box. Continuing with our example, select the Retail Sales Tax Collected by Facilitator and enter sales made through Fullscript. In this case, there is a $100 deduction for returns and a $900 deduction for Marketplace selling.
Tip! If filing a paper return, in the Deduction section (under Retail Sales Tax), mark Other and write an explanation along the lines of "Retail sales tax collected by a facilitator."
Step 4: Local sales
Since all sales tax relating to Fullscript has been deducted, there should be no local amounts reported. This section should only be completed if you have direct sales to report outside of Fullscript.
Step 5: Summary review
The last page shows a summary of the sales and tax amounts reported to Washington State.
In the example we used, the practitioner had $1,000 in Fullscript sales with no other sales from other sources. The final amount owing, in this case, would be the $4.24 in B&O tax.