Washington State Voluntary Disclosure Program for International Remote Sellers

The Washington State Department of Revenue has created a temporary International Remote Seller Voluntary Disclosure program, similar to a tax amnesty program, for foreign (non-U.S.) companies that sell goods or services to consumers in the state. This program will have a limited window of opportunity to apply and make payments, as it will only be in effect from February 1 through May 31, 2026.

The program is open to foreign businesses that have established nexus with Washington State by having either a physical presence in the state or annual sales of over $100,000 to customers in the state.  To be eligible, a business must meet the following criteria.

Eligibility Criteria

• Must be headquartered outside the United States.
• No active registration or reported taxes with Washington for the current year and prior four years
• No contact from the Department of Revenue for enforcement purposes for the current year and the prior four years
• No evasion or misrepresentation in reporting tax liabilities.

In exchange for coming forward under the program, businesses will only be required to compute and pay any delinquent business and occupation (B&O) taxes for the current year plus the prior four years, and one year of uncollected retail sales tax. The typical lookback period for businesses that fail to participate in this program and are later discovered is seven years for both B&O and sales taxes. Additionally, while the state can impose penalties of up to 39% for failing to register for and pay taxes, these penalties will be waived for those who participate. Interest will still be assessed at statutory rates.

While not all foreign businesses may be selling goods or services subject to sales tax in the state, all businesses having nexus, with few exceptions, are typically required to pay the state’s B&O tax. The tax is imposed directly on gross receipts at rates varying from .471% to 2.1% and must be paid by the business, not its customers. 

All applications for this program must be made online beginning February 1, 2026, and will require the following items:

• Name, address, and phone number of the business; an anonymous application can be made, but an identity must be disclosed within 15 calendar days of applying or the application will be cancelled, and a new application must be started (the business also risks being discovered by the state before re-applying)
• A spreadsheet of gross income using the state’s own specified format
• A completed Washington Business Activities Questionnaire
• An authorization form allowing the state to communicate by fax or email, to the business or a third party representing the business under this program
• Copies of reseller permits, exemption certificates, and similar documentation, if any

Application Process and Important Deadlines for Foreign Businesses

As businesses will likely be required to remit sales and B&O tax on a go-forward basis at the time the voluntary disclosure is completed, registration with the Department using its online business license application is also required. This should be completed immediately after submitting the application using the online Business Licensing Wizard.

Formal agreements will be sent to the businesses whose applications are approved, and they must be signed and returned to the department within 30 calendar days or else risk having their applications cancelled and a seven-year lookback period applied, plus the 39% penalties on taxes owed. If more information is needed from the business, the program examiner will inform the business of what is required. If not all the necessary information or documents were provided at the time of the application, all materials must be submitted within 60 days of the application date. Assuming everything is complete with the application, a draft of the assessment will be sent to the business and submitted to the department for review, with the final assessment posted on the online Department of Revenue’s online account. Payment must be received by the date indicated, or additional interest and penalties may apply.

Businesses whose program applications are denied will receive explanations from the Department, as well as further information on moving forward. Businesses that do not qualify for the program because of current or prior registration with the state may still be eligible for a 5% waiver of the usual penalties. Actively registered businesses with unregistered periods prior to their original registration dates may qualify for program benefits, provided the other program requirements are met.

Foreign businesses selling to Washington customers are encouraged to look themselves up on the state’s website, Washington State Department of Revenue, to confirm they are not already registered with the state.  For more information about this voluntary disclosure program or if you are interested in participating in order to resolve your delinquent B&O and sales taxes in Washington with a limited lookback and penalties waived, please contact your CBIZ tax professional.