The Washington Department of Revenue has announced a pilot International Remote Seller Voluntary Disclosure Program, running February 1 through May 31, 2026. This program was created in response to feedback from taxpayers and representatives and provides an opportunity for unregistered international businesses to come into compliance.

What the Program Does

The Voluntary Disclosure Program allows unregistered businesses to voluntarily pay outstanding tax liabilities. In return, the Department agrees to limit the lookback period and waive delinquent return, tax assessment, and unregistered penalties.

Who Is Eligible?

The International Remote Seller VDA program applies to businesses headquartered outside of the United States of America that meet all the following criteria:

• Has not had an active registration with the Department at the beginning of the statutory period (4 years plus current year).
• Has not been contacted by the Department for enforcement purposes (e.g., audit or compliance contacts regarding registration or reporting requirements) within the current statutory period.
• Has not engaged in evasion or misrepresentation in reporting tax liabilities.

Program Benefits

Limited Lookback Period

• Four years plus the current year for business and occupation (B&O) tax.
• Twelve months for uncollected retail sales tax.

Potential Penalty Waivers (up to 39%)

• 5% assessment penalty for substantially underpaid tax
• 5% unregistered penalty
• 29% late payment of a return penalty

Simplified Tax Assessment

• The Department can summarize unreported tax liability in a single tax assessment.

Note: If you have collected retail sales or use tax but did not remit it, there is an unlimited lookback period, and the 29 percent late payment of a return penalty will apply only to the collected and unremitted retail sales or use tax amounts.

Penalties may be partially or fully waived. Interest will be imposed at the statutory rate. If approved into the program, you may be required to complete a Business License Application and pay the associated application fee.

Learn More

For full details and application instructions, visit the Washington Department of Revenue website here. For more information or assistance with applying to either Washington VDP, please contact Mike Roben, John Katsandres, or Caleb Allen at KOM Consulting. Our team can help assess whether you or your business are eligible and ensure compliance with reporting obligations.