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Washington announces international remote seller voluntary disclosure program

  • Introduction of International Remote Seller VDP: The Washington Department of Revenue (DOR) will offer a temporary International Remote Seller VDP from February 1, 2026, to May 31, 2026, targeting foreign businesses with substantial nexus in Washington. This program allows eligible businesses to limit their exposure to penalties and reduce the lookback period for tax liabilities.
  • Key Features of the Program: Participating businesses can benefit from a one-year lookback for retail sales tax and a four-year lookback for business and occupation (B&O) tax, with potential penalty waivers of up to 39%. Businesses that have never been registered or contacted by the DOR for enforcement purposes during the lookback period can qualify for these benefits.
  • Updates to Existing VDP: Effective September 1, 2025, the DOR revised its existing VDP, allowing businesses with prior registrations or enforcement contacts outside the lookback period to qualify for penalty waivers. This expansion offers a more accessible path to compliance for many businesses, particularly foreign sellers, by broadening eligibility criteria and providing significant penalty relief.

Source PwC



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