If your business is headquartered outside the United States and you've been selling into Washington State, there's a limited window right now that's worth paying attention to.

Washington's Department of Revenue (DOR) has opened a temporary Voluntary Disclosure Program specifically for international remote sellers and marketplace facilitators. It runs from February 1 through May 31, 2026 — and for eligible businesses, it offers a meaningful path to getting compliant without the full weight of retroactive penalties.

What Voluntary Disclosure Actually Means

Most businesses that have unknowingly built up sales tax exposure in a new state face an uncomfortable reality: once you're on the radar, the liability can stretch back years. Penalties stack up. Interest compounds. The catch-up process is expensive and stressful.

A Voluntary Disclosure Agreement (VDA) changes that dynamic. Instead of waiting for enforcement to find you, you come forward first. In exchange, the state typically limits how far back it looks and reduces or waives certain penalties.

Washington's international program follows that model — with some specifics worth understanding.

What the Program Offers

For eligible businesses, Washington is offering a capped lookback period of four years plus the current year for business and occupation taxes, and just twelve months for uncollected retail sales tax. That's a significant reduction compared to what an enforcement action might trigger.

The program also offers the possibility of waiving up to 39% in potential penalties, which can represent a substantial difference in what a business ultimately owes. And rather than requiring businesses to reconstruct years of filings individually, outstanding liabilities may be summarized by the DOR into a single assessment: a practical simplification for businesses with complex or voluminous transaction histories.

Who Is (and Isn't) Eligible

The program is specifically designed for businesses headquartered outside the U.S. To qualify, a business must not have an existing registration with Washington's DOR, must not have reported taxes there during the statutory lookback period, and must not have been contacted by the department for enforcement within that same window. Businesses that have engaged in tax evasion or misrepresentation are not eligible.

One important carve-out: if your business collected sales tax from Washington customers but never remitted it to the state, the lookback is unlimited and a separate late payment penalty applies. The program is designed for businesses with unintentional gaps, not those that collected and pocketed funds.

What the Application Process Looks Like

Applications are processed as they arrive, and completeness matters. The DOR has indicated that complete applications may be prioritized over those missing documentation — so it's worth taking the time to pull everything together before submitting.

A complete application generally includes business contact information, a gross income spreadsheet in the DOR's specified format, a completed Washington Business Activities Questionnaire, a tax and email authorization form, and documentation for any claimed exemptions.

Registration with the DOR is also required and should be completed online after submitting the voluntary disclosure application.

One note on anonymity: businesses can choose to apply anonymously initially, but must disclose their identity within fifteen days of application. The DOR's protection from discovery only covers that fifteen-day window — so the clock starts moving quickly once you apply.

Why This Matters for International Sellers

Nexus rules in the U.S. can catch international businesses off guard. Washington has its own nexus thresholds, and selling into the state through marketplace facilitators can create obligations that aren't always obvious from the outside. Many international businesses discover their U.S. exposure later than they'd like — often during fundraising due diligence, acquisition review, or when a state notice arrives unexpectedly.

This program is one of the more accessible paths to resolving that exposure without triggering a full audit or enforcement process. The combination of a capped lookback, potential penalty relief, and a streamlined assessment process makes it worth evaluating seriously if you have any Washington activity.

The Window Closes May 31

Voluntary disclosure programs like this one are genuinely time-limited. When the window closes, the standard enforcement framework applies — and the terms are less favorable.

If you're not sure whether your business qualifies, or you want help assessing your Washington exposure before applying, that's exactly the kind of work Kintsugi supports. We help businesses understand where they have obligations, navigate the VDA process, and get compliant without the scramble.