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.
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
Other US Sales Tax Updates
Commercial lease sales tax ends in Florida
As of October 1, 2025, businesses will no longer be charged sales tax on base rent or common operating charges.
Nevada moves sales tax return deadline to the 20th starting in 2026
Nevada has updated its sales and use tax filing schedule. Beginning with the January 2026 reporting period, returns and payments are due on the 20th of the following month, replacing the previous end-of-month deadline. The first return affected by this change is due February 20, 2026.
2026 California sales tax update: 7 cities, Santa Clara County, and Delano
Seven cities and Santa Clara County will increase sales tax rates on April 1, 2026, and sellers must apply the new rates from that date. San Jose, Milpitas, and Campbell are key affected cities, while Delano’s 8.25% district tax remains in effect with no expiration.