Washington announces temporary VDA program for international remote sellers (Feb-May, 2026)
Washington now taxes digital advertising. As of October 1, ad platforms are applying sales tax to Sponsored and Display Ads for customers with Washington billing addresses — meaning sellers will see higher costs.
Written by Alex Lamachenka
Head of DemandGen
Published
TL;DR
Washington is opening a four-month voluntary disclosure window for international remote sellers and marketplace facilitators. The program offers a reduced lookback and penalty relief for businesses that haven’t properly registered or remitted Washington B&O or sales tax.
What’s changing
Washington will run a temporary Voluntary Disclosure Program for international sellers from Feb 1 to May 31, 2026.
Key features:
- Limited lookback
- 4 years + current year for B&O tax
- 12 months for uncollected sales tax
- Penalty relief
- Up to 39 percent of penalties waived
- If tax was collected but not remitted: unlimited lookback + 29 percent penalty only
- One combined assessment for all liabilities
Businesses must submit a complete application package to qualify.
Who this affects
- International sellers shipping into WA
- Foreign marketplace facilitators with WA customers
- Shopify/Amazon/Etsy sellers headquartered outside the US
- Any non-US business with possible economic nexus in WA that never registered or remitted
Why this matters
Washington is one of the country’s toughest states on remote seller compliance. A reduced lookback is rare and can save foreign sellers years of liability.
Missing this program could expose businesses to full lookback, penalties, and harder enforcement.
TaxCloud tip
If you don’t use TaxCloud or if your business operates from outside the United States, you can still reach out to us to determine whether you qualify for Washington’s voluntary disclosure program for international remote sellers (Feb-May 2026).
TaxCloud can help you assess whether you have nexus in Washington and whether this temporary VDA program is worth pursuing. For a deeper understanding of how VDAs work and why they can significantly reduce tax exposure, you can explore our full overview here. This guide explains the benefits of VDAs, including shorter lookback periods, penalty waivers, and how proactive disclosure can protect your business from costly audits.
Next steps
- Review whether you have created economic nexus in Washington
- If so, begin gathering the documentation listed in the DOR announcement
- Submit the VDA application between Feb 1 and May 31, 2026
- Register with the DOR after submitting your application
Official sources:
-
1.
Washington State Department of Revenue International Remote Seller Voluntary Disclosure Program. Source link
Disclaimer
TaxCloud provides sales tax compliance solutions. We do not provide legal or tax advice. For questions about your specific tax situation or filing requirements, we recommend consulting a qualified sales tax accountant.
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