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
Mecklenburg County voters approve transit sales tax referendum
Mecklenburg County, NC approved a one-cent transit sales tax. The new rate takes effect April 1, 2026 — and gives Mecklenburg the highest countywide rate in North Carolina.
Illinois eliminates state grocery sales tax starting January 1, 2026
Illinois has eliminated its 1% state sales tax on grocery items. While the state-level grocery tax is ending, local grocery taxes may still apply depending on the location of the sale.
Florida launches first-ever Second Amendment sales tax holiday
Florida is running a 4-month sales tax holiday (Sept–Dec 2025) on firearms, ammo, and outdoor gear. Sellers shipping to Florida need to adjust compliance systems.