Voluntary disclosure agreement (VDA)
Updated
Definition
A program offered by most state DORs that lets a seller come forward to disclose unpaid historical sales tax. VDAs typically limit the lookback period (e.g., 3-4 years) and waive penalties, making it much cheaper than waiting to be audited.
Related terms
- Sales tax nexus— The legal connection between a seller and a US state that obligates the seller to register…
Where this applies
- See What is sales tax nexus for the pillar explanation of how nexus works.
- Try the nexus calculator to check your exposure.
- Browse the full glossary for other key terms.