US – Washington: Voluntary Disclosure Program for Overseas Remote Sellers 

The Washington Department of Revenue (DOR) launched a beneficial tax campaign for overseas remote sellers, which will run from February 1, 2026, to May 31, 2026. The “International Remote Seller Voluntary Disclosure Program’s” principal aim is to promote compliance of overseas remote sellers with Washington’s retail sales tax and Business and Occupation(B&O) tax regulatory framework. 

The DOR guided with an agenda to promote tax compliance, and raise the number of registrants to retail sales tax and B&O tax, promotes this rare opportunity for taxable persons to “come upfront” about their “still not identified” tax duties, as a beneficial option to pay “tax payable” under various benefits. 

This program is established for the following businesses: 

1. Aren’t registered for tax in Washington State
2. Have established “substantial nexus” in the state 
3. Required to register and report taxes under retail sales tax and B&O tax provisions

To be eligible for this preferential programme, the overseas remote sellers need to meet the following criteria: 

• Place of business/headquarters outside the United States 
• Hasn’t had an active registration with or reported taxes within the current statutory period 
• Not contacted or audited for enforcement purposes within the statutory period 
• Hasn’t engaged in evasion or misrepresentation in tax reporting

Benefits of businesses that sign VDP with the Washington DOR: 

• Limited lookback period
  • Four years plus the current year for business and occupation (B&O) taxes
  • 12 months for uncollected retail sales tax
• Waiver for penalties
  • Up to 39% in potential penalties can be waived, including:
  • 5% assessment penalty for substantially underpaid tax
  • 5% unregistered penalty
  • 29% late payment of a return penalty

If you have any questions concerning your retail sales tax compliance or B&O tax compliance for your remote sales to Washington customers, please contact us for more information.