Switzerland postponed its planned VAT rate increase from January 2026 to what is now most likely January 2028. The standard rate was set to rise from 8.1% to 8.8%. The 0.7% increase was designed to generate CHF 4.2 billion annually to fund a 13th monthly pension payment for retirees. The delay pushes the parliamentary approval deadline and required public referendum vote further into the future. ‍

The bottom line: Businesses operating in Switzerland now have additional time to prepare for the rate changes. Despite this postponement and a previous increase in January 2024 (from 7.7% to 8.1%), Switzerland continues to maintain the lowest VAT rate among major European countries.

Belgium is debating a proposal to increase its standard VAT rate from 21% to 22% as part of broader budget reforms. The proposal also includes merging the current 6% and 12% reduced rates into a single 9% rate, expanding 0% VAT coverage to essential goods like fresh produce, medicines, diapers, and public transport. 

The bottom line: The 1% increase would generate substantial revenue for Belgium but will raise prices on goods and services subject to the standard rate. The proposal has triggered political opposition within the ruling coalition, and no implementation date has been set as lawmakers work to balance fiscal needs with social concerns.

Chicago City Council introduced an ordinance establishing a Social Media Amusement Tax targeting platforms with more than 100,000 Chicago users. The tax would charge social media businesses $0.50 per Chicago consumer above the 100,000-user threshold, with each calendar month counting as a separate reporting period. The proposal defines social media businesses as for-profit entities that provide social media access and collect consumer data for commercial purposes. News organizations, search engines, internet service providers, and streaming services without user-generated content are excluded from the tax.

The bottom line: Revenue from this tax would fund a new Protecting Care Fund for mental and behavioral health operations. The ordinance faces legal challenges because it targets only online social media platforms while exempting non-digital businesses that also collect and sell consumer data, creating potential violations of the Internet Tax Freedom Act. If passed, the tax takes effect January 1, 2026.

Comcast filed a lawsuit challenging Washington's new digital advertising tax, arguing the law violates the federal Internet Tax Freedom Act (ITFA). The tax requires sales tax collection on internet-based advertising services while exempting traditional media like newspapers, television, radio, billboards, and stadium naming rights. The law faces opposition from streaming giants Netflix, Paramount+, Peacock, and Disney. 

The bottom line: Businesses providing digital advertising services in Washington should prepare for the October 1, 2025 implementation date while monitoring this legal challenge. If Comcast wins, the state loses $475 million in projected tax revenue over four years. The Department of Revenue will release interim guidance within two weeks for taxpayers to follow during the legal proceedings.

Texas adopted new regulations confirming that marketplace seller fees and commissions are taxable as "data processing services." These regulations take effect October 1, 2025, and will only be enforced prospectively. The state will require marketplaces to collect sales tax on the commission fees they charge to sellers, adding an 8%+ tax burden on top of existing marketplace fees. 

The bottom line: Marketplace sellers based in Texas will see their net revenue decrease as platforms like Amazon must now charge sales tax on commission fees. Marketplaces face significant administrative challenges, including issuing separate invoices for fees and handling complex sourcing rules that treat goods and commissions differently. Tax engines will need major updates to comply with these split-transaction requirements.

Sri Lanka postponed the implementation of its 18% VAT on digital services provided by non-resident companies from October 1, 2025 to April 1, 2026. The delay comes after digital services providers requested additional time to address practical difficulties and prepare their compliance systems. 

The bottom line: Foreign digital service providers now have until April 1, 2026, to register for VAT in Sri Lanka and set up compliance systems. The 18% VAT will apply to B2C digital services such as cloud storage, online marketplaces, social media platforms, digital advertising, and subscription services.