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If you do business in Washington, you\u2019ve probably heard rumblings about the state\u2019s major tax changes under ESSB 5814. And if you offer services like advertising, IT, custom software development, temporary staffing, or investigation\/security services, these changes directly impact you.<\/p>\n
Starting October 1, 2025<\/strong>, many of these services will be treated as retail sales<\/strong>\u2014which means new tax obligations for a lot of businesses that have never had to collect sales tax before.<\/p>\n Big shifts in tax policy often bring uncertainty, and this situation is no exception. The positive news is that Washington\u2019s Department of Revenue (DOR) introduced two programs designed to help businesses get compliant while reducing penalties and limiting historical exposure:<\/p>\n Both can substantially reduce your financial risk\u2014even if you\u2019re already registered but haven\u2019t been reporting everything correctly<\/strong>.<\/p>\n Let\u2019s break down what\u2019s changing and how you can take advantage of these opportunities.<\/p>\n The DOR recently expanded its Voluntary Disclosure Program to make it easier for businesses, particularly unregistered ones, to resolve past liabilities.<\/p>\n As of September 1, 2025<\/strong>, the program includes:<\/p>\n Many businesses assume that once they\u2019re registered, they\u2019re stuck. That\u2019s not the case. Being registered does not eliminate your options. You may still be eligible for meaningful penalty relief if you misclassified services or misunderstood the new ESSB 5814 rules. Alongside the VDP, Washington created the\u00a0<\/span><\/span>ESSB 5814 Penalty Relief Program<\/span><\/span>, designed specifically for businesses affected by the new taxable-services rules.<\/span><\/span>\u00a0<\/span><\/p>\n You may be eligible if:<\/p>\n Relief also applies to some existing contracts, but only until the earlier of:<\/p>\n Both programs provide meaningful relief, but each has nuances:<\/span>\u00a0<\/span><\/p>\n Because DOR processes applications in the order received, and because the wrong filing can accidentally expand your lookback period or disqualify you from relief, self-filing<\/strong><\/span><\/span>\u00a0carries real risk<\/span><\/span>.<\/span><\/span>\u00a0<\/span><\/strong><\/p>\n Perkins helps businesses:\u00a0<\/strong><\/p>\n\n
Washington\u2019s Voluntary Disclosure Program: Now More Accessible Than Ever<\/strong><\/h2>\n
What\u2019s New?<\/h3>\n
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What If You\u00a0Are Already Registered?\u00a0<\/strong><\/h3>\n
Even if you have a Washington tax account but haven\u2019t been reporting certain activities<\/strong>\u2014especially newly taxable services\u2014you may still qualify for relief.<\/strong><\/p>\nWashington offers:<\/strong><\/h4>\n
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Key Point:<\/h4>\n
Our team at Perkins helps many registered businesses navigate this without triggering unnecessary scrutiny.<\/p>\nESSB 5814 Penalty Relief: Temporary but Valuable<\/span><\/b>\u00a0<\/span><\/h2>\n
What Does It Cover?<\/h3>\n
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Who Qualifies?<\/h3>\n
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Choosing the Right Path \u2014 and Why You Should Not Go At It Alone<\/span>\u00a0<\/span><\/h3>\n
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\n Your situation<\/span><\/b>\u00a0<\/span><\/td>\n Potential path<\/span><\/b>\u00a0<\/span><\/td>\n<\/tr>\n \n You were\u00a0<\/span>unregistered<\/span><\/b>\u00a0and have historical liability<\/span>\u00a0<\/span><\/td>\n VDP<\/span><\/b>\u00a0<\/span><\/td>\n<\/tr>\n \n You were\u00a0<\/span>registered but misunderstood new ESSB 5814 rules<\/span><\/b>\u00a0<\/span><\/td>\n ESSB 5814 Penalty Relief<\/span><\/b>\u00a0or other\u00a0penaltywaiver\u00a0options<\/span>\u00a0<\/span><\/td>\n<\/tr>\n \n You were\u00a0<\/span>registered but not reporting certain activities correctly<\/span><\/b>\u00a0<\/span><\/td>\n Relief may still be available through penalty waivers or structured resolution<\/span>\u00a0<\/span><\/td>\n<\/tr>\n \n You are\u00a0not sure whether your exposure is historical or tied to new taxable services<\/span>\u00a0<\/span><\/td>\n Start with professional guidance<\/span><\/b>\u00a0<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Why Contact Perkins Before Filing Anything?<\/span><\/b>\u00a0<\/span><\/h2>\n