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.

Approximately 2,000 government workers in British Columbia – including tax administration staff – launched strike action on September 2, 2025. British Columbia businesses and out-of-province companies selling into the province are experiencing significant delays in PST registration processing and cannot reach tax officials by phone. Multiple government offices are being impacted with union officials warning the job action will escalate in coming days if wage negotiations remain stalled.

The bottom line: Both local businesses and remote sellers needing PST registrations, tax rulings, or compliance assistance should expect processing delay. Companies with upcoming filing deadlines should maintain detailed records of submission attempts.

‍

Taiwan's National Taxation Bureau is cracking down on individuals who sell goods through social media platforms like Facebook, Instagram, and YouTube without proper tax registration. Under current law, sellers must register for business tax when monthly sales exceed NTD 80,000 for goods or NTD 40,000 for services. The Ministry of Finance has deployed AI technology to identify unregistered online sellers. 

The bottom line: Foreign businesses and individuals selling to Taiwan through e-commerce platforms or social media need to monitor their monthly sales thresholds closely and register if necessary. Taiwan offers a voluntary disclosure program that can eliminate penalties for sellers who proactively register and pay back taxes before being caught by the AI enforcement system.

Chile's tax authority has published updated VAT registration and compliance requirements for non-resident digital service providers, effective October 25, 2025. The new procedures clarify the use of Chile's simplified VAT registration platform that has been available since 2024, with monthly or quarterly filing options. Foreign providers cannot claim VAT deductions on local input VAT under the simplified regime. Chile has maintained its 19% VAT on foreign digital services since July 2020, covering streaming, cloud services, online gaming, e-books, and digital advertising.

The bottom line: Foreign digital service providers selling to Chilean consumers must prepare for the updated compliance procedures by October 25, 2025. Companies should review their current registration status and ensure they're using Chile's simplified digital services portal for streamlined VAT reporting, as traditional VAT deduction rights are not available under this regime.

Recent news reports suggest Chicago is considering a new social media advertising tax. This would be part of the city’s broader efforts to close the city’s project $1.1 billion budget shortfall for the fiscal year 2026. Few clear details have been shared regarding this potential change, but Chicago Mayor Brandon Johnson did express concern about the “billions of dollars” generated through digital industries and suggested that free social media advertising is widespread and under-taxed.

The bottom line: Digital advertising agencies, social media platforms, and businesses running social media ad campaigns in Chicago should monitor developments as the mayor's budget address this fall may provide concrete proposals for this potential new tax.