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Texas Voluntary Disclosure Agreement

A Texas Voluntary Disclosure Agreement allows eligible businesses to resolve unreported sales tax liabilities while limiting penalties and reducing audit risk.

A properly structured VDA may:

If your business may have Texas nexus exposure, acting before receiving contact from the Comptroller is critical.

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What Is a Texas Voluntary Disclosure Agreement

A VDA is an agreement between a business and the Texas Comptroller that allows voluntary registration and payment of back taxes under negotiated terms.

Texas VDAs are typically available when:

Texas Back Sales Tax Liability

How a Texas VDA Reduces Exposure

Without voluntary disclosure, Texas may review multiple prior years during an audit.

Under a VDA, the state may:

Reducing the lookback period can significantly lower total liability.

Sales Tax Penalties and Interest Texas

Not Sure If This Applies to You

Before registering or filing, confirm whether your business has created sales tax nexus in California or Texas.

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When a Texas VDA Is Not Available

A voluntary disclosure agreement may not be available if:

In these situations, different resolution strategies may be required.

Sales Tax Audit Risk Texas

Steps in the Texas VDA Process

  1. Determine when Texas nexus began
  2. Estimate total back tax liability
  3. Submit an anonymous application through a representative
  4. Negotiate lookback terms
  5. File returns and remit payment under agreement

Accurate nexus analysis is critical before entering a voluntary disclosure negotiation.

Texas Economic Nexus Threshold Explained

Why Acting Early Matters

Once the state contacts your business, voluntary disclosure eligibility may be limited. Businesses that act before enforcement begins generally preserve more flexibility and reduce financial exposure.

Texas Voluntary Disclosure FAQ

The lookback period depends on facts and negotiations but is typically shorter than a full audit review.

Certain penalties may be waived under voluntary compliance agreements depending on circumstances.

In most cases, once the Comptroller initiates contact, voluntary disclosure eligibility becomes limited.

Considering a Texas Voluntary Disclosure Agreement

If your business may have unreported Texas sales tax, the first step is determining when nexus began and estimating total liability.

Run Your Nexus Risk Check

Identify potential eligibility before enforcement limits your options.

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