A two-year lookback is proposed for a Streamlined Sales Tax (SST) voluntary disclosure program for certain remote sellers, but the available information does not establish that the program will start in 2027—or that it will be available then. The proposal describes a 24-month lookback, subject to state-law exceptions, but a proposal is not a guarantee of an operating program. Before relying on it, confirm the current status with the Streamlined Sales Tax Governing Board or ask Sales Tax Compliance USA to check your circumstances.
Key takeaways
- The SST proposal describes a 24-month lookback, but a confirmed 2027 launch is not established.
- The proposed benefit is limited to qualified remote sellers and may vary by state.
- State law may require a longer lookback; penalty relief does not automatically waive interest.
- Check VDA eligibility before registering or filing in a state with possible past exposure.
- A VDA addresses specified past periods; ongoing registration, collection, filing, and payment still matter.
What a sales tax VDA is—and what the proposal could change
A sales tax voluntary disclosure agreement, or VDA, is an arrangement through which a business that has not properly registered, collected, or reported tax can come forward to resolve past obligations with a state. The state sets the terms. Depending on its rules and the facts, a VDA may limit the period covered, waive or reduce penalties, and require the business to register, file returns, and pay tax and interest. A VDA is not automatic immunity from an audit or a promise that every past liability will be forgiven.
The SST proposal would create a coordinated route for qualifying remote sellers to disclose in participating states. Its central proposed change is a 24-month lookback measured from the seller’s notice of intent to participate, unless a state is legally required to use a longer period. The proposal also contemplates penalty relief to the extent state law allows. These are proposed program terms, not a current entitlement for sellers to claim without checking whether the program has been adopted and is accepting applications.
For background on the proposal and why sellers may want to prepare, see our article, Streamlined remote-seller VDA changes: should you prepare now? Preparation can be useful, but do not register or file in a state before checking whether that step could affect VDA eligibility.
Will the two-year lookback be available in 2027?
It cannot be confirmed from the available official material that the SST VDA program will start in 2027. The proposal and draft program materials describe a possible 24-month lookback, but they do not establish a confirmed 2027 launch date. Treat the two-year period as a proposed benefit until the Governing Board and participating states confirm that the program is approved, open, and applicable to your business.
Even if the program is operating in 2027, the two-year lookback would not necessarily apply to every seller or every state. The proposal allows for longer periods where state law requires them, and eligibility is considered state by state. The exact position depends on your circumstances—confirm with the state, or talk to us and we will check it for you.
Who may qualify—and does it cover all remote sellers?
Under the proposal, a qualified remote seller generally would need to have a sales-tax obligation because it meets a state’s economic-nexus threshold, rather than because it has a physical presence there. The proposed conditions include registering, or agreeing to register, in each participating state where the seller meets the threshold; filing returns or comparable schedules for the lookback period; paying the balance due or arranging a payment plan with the state; and remaining registered and compliant while the seller continues to meet the state’s threshold.
The proposal excludes certain sellers, including sellers that have received an audit notice before applying, sellers that were previously registered or notified to register and then exceeded the state’s economic-nexus threshold during the relevant period, and sellers that collected tax but did not remit it. The proposal also says a seller must not have previously participated in the program. These are proposed criteria, and the state’s final rules and your facts would control.
So, no: the proposed two-year lookback is not described as a benefit for all remote sellers. It is aimed at a defined class of qualified remote sellers, and qualification may differ by state. Marketplace sales, direct website sales, affiliates, prior registrations, and tax collected but not remitted can all matter. Do not assume that selling through Amazon, Shopify, Etsy, or Walmart by itself makes you eligible or ineligible.
Which states may participate?
The proposal calls for participation by Streamlined member states unless participation is prohibited by state law. The proposal document identifies 23 member states and one associate member state at the time it was prepared, but that is not the same as a confirmed list of states currently accepting applications under an active SST VDA program. Membership, legal authority, and program participation should be checked against current Governing Board information before you make a decision.
Accordingly, there is not a reliable basis here to promise that any particular state will offer the proposed two-year terms in 2027. The SST proposal also contemplates state-law exceptions, and qualification is assessed state by state. Ask for a current state-by-state check before registering, filing, or disclosing. A state’s ordinary VDA may still be available even if the proposed SST program is not active or does not cover your situation.
How a VDA lookback period is determined
A lookback period is the span of past tax periods a business must report and pay under the disclosure arrangement. Under the draft rule, the lookback period is the 24-month period immediately before the seller registers in the SST Registration System. That proposed starting point matters: waiting to apply could shift the periods covered, while registering first could affect eligibility.
Outside the proposed program, there is no single nationwide sales-tax VDA lookback. Each state’s law and VDA policy can set its own period, and the result may depend on whether the seller had nexus, whether returns were filed, whether tax was collected, and whether an audit or other contact has begun. For example, North Dakota’s published guidance describes a generally three-year disclosure period, while Louisiana’s published guidance describes a general period tied to its prescription rules and treats collected-but-unremitted tax differently. Those examples are not substitutes for checking the state where you have exposure.
What to do before registering or filing
First, pause before making a new registration or filing in a state where you may have an undisclosed past obligation. The SST proposal warns that eligibility can be affected by prior registration or state notice, and state VDA procedures may also require an application before registration. Do not delay a required filing or ignore a state notice; instead, get advice promptly so you can understand the consequences and deadlines.
Next, assemble a state-by-state picture of your business: sales by channel and destination, marketplace-facilitated and direct sales, dates and amounts of sales, prior registrations and returns, tax collected, inventory or other physical presence, and any state correspondence. Keep records that distinguish tax collected from tax not collected. This information helps determine where nexus may exist, which periods may be exposed, and whether a VDA or another correction process is appropriate.
Cross-border sellers should also separate U.S. sales-tax questions from customs duties, import taxes, and foreign VAT or GST. If your business has unusual taxable services or product classifications, state-specific treatment matters; our article, Will Kentucky tax my data-brokering services starting August 1?, illustrates why a product or service’s precise description can change the analysis. The exact position depends on your circumstances—confirm with the state, or talk to us and we will check it for you.
What tax, interest, and penalties may be due?
A VDA generally addresses unpaid tax for the periods covered, along with any interest required by the state. If you did not collect tax from customers, the business may still owe the tax; whether it can recover any amount from customers is a separate commercial and legal question. If you collected tax and did not remit it, that fact can change eligibility and the state’s treatment, so disclose it accurately.
The proposed SST program contemplates waiving penalties to the extent state law permits. It does not promise a waiver of interest. Do not assume that a two-year lookback means only two years of tax in every case, or that interest and penalties will both disappear. State law, the final program terms, the seller’s conduct, and the state’s calculation determine what is due. Ask for a written state-specific estimate before committing to a filing or payment plan.
How to apply for a multistate sales tax VDA
If the SST program is approved and open, the proposal’s route is to notify the Governing Board in the manner it specifies and register, or agree to register, through the Streamlined Sales Tax Registration System in each participating state where you meet the economic-nexus threshold. The seller would then provide the required returns or comparable schedules for the lookback period and pay the balance due or arrange a payment plan with the state. Confirm the final application instructions and state participation before submitting anything.
If the SST program is unavailable or does not fit, a multistate disclosure may be possible through the Multistate Tax Commission’s voluntary disclosure process, or through separate state applications. The MTC process coordinates disclosures with participating states; each state still decides whether to accept the disclosure and what terms apply. A representative can help assess eligibility and communicate with states, but no process guarantees acceptance or a particular lookback.
For a practical sequence, identify the states and potential exposure, check audit and registration history, compare the SST and state-specific routes, submit the appropriate application before registering where required, and follow the state’s agreement for returns, payment, and future compliance. Sales Tax Compliance USA is a done-for-you service staffed by people; we can review your facts, coordinate the disclosure process, and handle ongoing sales-tax compliance. We cannot promise that a state will accept an application or grant a particular concession.
How to stay compliant after a VDA
A VDA resolves specified past periods; it does not replace ongoing compliance. Follow the agreement’s registration, return, and payment instructions, and continue collecting and remitting tax where required. Under the SST proposal, a qualified seller would agree to remain registered and collect and remit tax for as long as it continues to meet the state’s economic-nexus threshold.
Not sure how this applies to your business? We handle US sales tax registration, filing and remittance for ecommerce sellers as a fully managed service, for one fee. Book a free consultation and we will review your own position with you.
Keep sales and exemption records organized by state, channel, and transaction type. Recheck nexus and product taxability as your sales, inventory, fulfillment arrangements, and state rules change. Marketplace collection does not automatically settle every obligation for direct sales or other tax types. A recurring review with a sales-tax service can help identify changes and keep filings current, but the business remains responsible for accurate records and timely cooperation with state authorities.
How the proposed SST VDA compares with other disclosure routes
| Route | Who it is aimed at | Lookback basis | Key caution |
|---|---|---|---|
| Proposed SST remote-seller VDA | Remote sellers meeting economic-nexus thresholds in participating states and satisfying the proposed qualification rules | Proposed 24 months before registration in the SST Registration System, unless a participating state’s law requires a longer period. | Do not treat as available in 2027 until the program’s approval, launch, state participation, and final terms are confirmed |
| Individual state VDA | Businesses with undisclosed liabilities in a particular state, subject to that state’s eligibility rules | Set by the state; may depend on filing history, nexus, tax collected, and state law | A state may require application before registration and may not offer the same terms as the SST proposal |
| MTC multistate voluntary disclosure | Businesses seeking a coordinated disclosure to multiple states that participate in the process | Determined under the applicable state agreements and policies | The MTC facilitates the process; each state decides acceptance and its own terms |
| Ordinary registration and filing | Businesses ready to begin prospective compliance, including those without an accepted VDA | Does not itself establish a negotiated past-liability lookback | Registering before checking VDA rules may affect eligibility or leave prior periods unresolved |
Frequently asked questions
What is a sales tax VDA?
A sales tax VDA is an arrangement for voluntarily disclosing and resolving previously unreported or underreported sales-tax obligations with a state. The state sets the eligibility rules and terms, which may address past tax, interest, penalties, registration, and filing requirements. Relief is not automatic.
What is the lookback period for a sales tax VDA?
It is the period of past tax activity the business must report and pay under the agreement. There is no single nationwide period: state rules and the facts control. The SST proposal describes a 24-month period before notice to participate, subject to a longer period where state law requires it.
Which states are participating in the proposed SST VDA program?
The proposal calls for Streamlined member-state participation unless state law prohibits it, but the available material does not establish a confirmed list of states currently accepting applications under an active program. Check current Governing Board information and each state’s position before relying on the proposed terms.
When will the Streamlined Sales Tax VDA program start?
A confirmed 2027 start date cannot be established from the available official material. The 24-month lookback is described in proposal and draft materials, so sellers should verify whether the program has been approved and opened before acting.
Who qualifies for the two-year VDA lookback?
The proposal targets qualified remote sellers whose obligation arises from meeting a state’s economic-nexus threshold and who satisfy registration, filing, payment, and ongoing-compliance conditions. It excludes certain sellers, including those with a prior audit notice, certain prior registration or state-notice histories, collected-but-unremitted tax, or prior participation. Final rules and state-by-state review would control.
Will the two-year lookback apply to all remote sellers?
No. The proposal limits the benefit to sellers meeting its qualification criteria, and state law may require a longer period. Selling through an online marketplace does not by itself establish eligibility.
Does a sales tax VDA waive interest as well as penalties?
Not necessarily. The SST proposal contemplates penalty relief to the extent state law allows, but it does not promise an interest waiver. The state’s law, final program terms, and your facts determine what tax, interest, and penalties may be due.
How do I apply for a multistate sales tax VDA?
First check whether the SST program is active and whether you qualify; if so, follow the Governing Board’s current notice and registration instructions. If it is unavailable or unsuitable, consider the MTC multistate process or state-specific applications. Check application sequencing before registering, because prior registration can affect eligibility.
Official sources
- https://www.mtc.gov/wp-content/uploads/2024/11/Memo-SST-VDA-Program.pdf
- https://www.streamlinedsalestax.org/docs/default-source/comm-slac-documents/slac-2026/sl26005a—rule-402-1—remote-seller-voluntary-disclosure.pdf?sfvrsn=dee3a8ac_4
- https://www.streamlinedsalestax.org/docs/default-source/comm-slac-documents/slac-2026/sl26005—section-402-1—remote-seller-voluntary-disclosure.pdf?sfvrsn=61c10946_4
- https://www.tax.nd.gov/sites/www/files/documents/guidelines/individual/voluntary-disclosure-program-guideline.pdf
- https://revenue.louisiana.gov/businesses/general-resources/voluntary-disclosure-agreement/
- https://www.streamlinedsalestax.org/Shared-Pages/State-Detail
Related reading
- Streamlined remote-seller vda changes
- Will kentucky tax my data-brokering services starting august 1
- Our sales tax compliance services
Getting this handled
If you would rather not work this out yourself, that is what we do. We register you, file your returns and keep you compliant across every state where you have an obligation — one point of contact, one invoice. Talk to us about your situation.
Reviewed by Paul le Roux, CA(SA). Sales Tax Compliance USA handles US sales tax registration, filing and remittance for cross-border and domestic ecommerce sellers as a fully managed service.
This article is general information for educational purposes and does not constitute legal or tax advice. Sales tax rules change and depend on your specific facts. Consult a qualified tax professional about your own position.