Voluntary Disclosure Agreements (VDAs) | Sales Tax Consulting Nationwide
Resolve past sales tax liabilities through voluntary disclosure agreements. We help U.S. and international businesses reduce exposure, limit penalties, and regain compliance nationwide.
Voluntary Disclosure Agreements (VDAs) for Sales Tax Compliance
If your business has unfiled sales tax obligations, you’re not alone. Many companies only discover their exposure after crossing nexus thresholds or receiving an audit notice. A Voluntary Disclosure Agreement (VDA) is often the best way to come forward — limiting how far back states can assess and significantly reducing penalties.
At SalesTaxDefenseUSA, we guide U.S. and international businesses — from Canadian retailers to European SaaS providers and Asian manufacturers — through the VDA process in every state, helping resolve liabilities before they escalate.
What Is a Voluntary Disclosure Agreement?
A VDA is a program offered by many states that allows businesses to voluntarily disclose unpaid taxes. In exchange for coming forward:
- States typically limit the lookback period (often 3–4 years instead of 7+).
- Penalties are reduced or eliminated.
- Interest may also be reduced.
- Businesses gain good standing moving forward.
Sales Tax VDA Programs in Key States
Every state’s program is different, but common VDA states include:
Case Study 1: Saving a Business $200,000 Through VDAs
A U.S. distributor had unfiled obligations in 8 states, with potential liability exceeding $350,000. By strategically pursuing VDAs, we limited the lookback period and eliminated penalties, reducing total liability by $200,000.
Case Study 2: International SaaS Company Reduces $400,000 Liability
A European software provider served U.S. customers for 5 years without registering. Facing over $400,000 in potential assessments, we entered VDAs in 10 states, reducing the liability to just $90,000 and ensuring compliance moving forward.
VDA vs Amnesty Programs
Businesses often confuse amnesty programs with VDAs. Here’s the difference:
- Amnesty — Offered temporarily, often during state budget shortfalls; applies for a short window only.
- VDA — Available year-round, allows anonymity, and usually provides greater penalty relief.
Bottom line: Amnesty is rare and unpredictable, while VDAs are a reliable solution whenever exposure exists.
Our VDA Process
We handle the VDA process from start to finish, protecting your business throughout:
- Anonymous State Inquiry — We begin by contacting states anonymously to confirm terms.
- Exposure Analysis — Reviewing your unfiled obligations and calculating potential liability.
- Agreement Negotiation — Working with the state to limit lookback and penalties.
- Registration & Filing — Handling all required registrations and back filings.
- Resolution & Compliance — Ensuring your business moves forward in full compliance.
A VDA is a program that allows businesses to voluntarily disclose unpaid sales taxes in exchange for reduced penalties and limited lookback periods.
Most states limit lookback to 3–4 years, compared to 7+ years without a VDA.
In many cases, yes. Penalties are typically waived if disclosure is voluntary.
Yes. Many states allow foreign businesses to enter into VDAs, which is often the best option for international companies that unknowingly created nexus.
Most do, but terms vary widely. We confirm state-specific rules before filing.
Almost always. Coming forward voluntarily puts you in control and usually reduces both lookback and penalties.
Yes. Many states allow VDAs for income tax, franchise tax, or other obligations, depending on the business structure.
Most states still require interest on unpaid tax, but some allow reductions. Even when interest applies, total liability is significantly less than waiting for an audit.