Share via

Washington State has opened a limited-time opportunity for foreign-headquartered remote sellers to address past tax obligations and enter compliance under a structured, predictable framework. The International Remote Seller Voluntary Disclosure Program (VDA), available from February 1 to May 31, 2026, is specifically designed for businesses located outside the United States that may have created substantial nexus in Washington through sales volume, representative presence, or other qualifying activities.

The program offers meaningful advantages to eligible businesses. Participants benefit from a clearly defined lookback period—significantly shorter than what may apply under standard enforcement—and the potential waiver of penalties that can otherwise reach up to 39%. These may include assessment penalties, unregistered business penalties, and late payment penalties. For companies with historic Washington-sourced receipts exceeding $100,000 or other forms of nexus, this relief can materially reduce exposure while ensuring a clean compliance position moving forward.

The window, however, is brief. Businesses that do not voluntarily disclose and are subsequently identified through routine audits or investigations face a lookback of seven years plus the current year, along with full penalties and interest. Previously registered entities are not eligible for this VDA but may still qualify for limited penalty waivers under separate rules. Foreign affiliates or subsidiaries with unregistered activity in Washington may apply individually through the same program.

For international businesses assessing their U.S. tax footprint, this is a practical moment to evaluate Washington nexus and determine whether the VDA offers a strategic route to resolution. Understanding eligibility, documentation, and the implications of voluntary vs. enforced discovery is critical.

If your organization may have Washington exposure, our team can help you assess your position and guide you through the VDA process with clarity and confidence.