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Sales tax and VAT updates for modern finance teams

Anrok’s team of tax experts shares the latest rate changes, taxability updates, and other news you need to know.

Washington

Comcast sues Washington over digital advertising tax set for October rollout

September 15, 2025

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.

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