Romania will increase its standard VAT rate from 19% to 21% as part of a sweeping tax reform announced by the new government. The changes, which will go into effect on August 1, 2025, are aimed at reducing public spending and increasing state revenue. 

The bottom line: This rate change represents a significant tax increase for most goods and services previously taxed at lower rates in Romania. Businesses operating in the country should prepare their accounting and point-of-sale systems for these changes before the August 1 implementation date.

Maine passed LD 210, a $320 million supplemental budget that significantly reforms the state's digital services sales tax framework. Effective January 1, 2026, Maine's 5.5% sales tax will extend to streaming platforms like Netflix, Hulu, and Spotify, redefining taxable "digital audiovisual and audio services" to include subscription-based electronic transfers where users don't gain permanent ownership. The legislation also abolishes the service provider tax (SPT), bringing previously covered services under the standard sales tax umbrella.

The bottom line: Digital content providers, streaming services, and media companies operating in Maine need to prepare their tax compliance systems for the January 2026 implementation, though some businesses previously paying higher SPT rates may benefit from the standardized 5.5% rate.

The deadline for foreign digital companies (like online platforms, streaming services, etc.) to register for tax purposes in the Philippines has been extended from June 1, 2025 to July 1, 2025. The Philippines granted this additional time because the online registration system is currently down due to technical upgrades.

The bottom line: The Philippines now taxes all digital service providers regardless of physical presence. Foreign providers earning over PHP 3 million are required to register with tax authorities by the newly extended deadline of July 1, 2025. SaaS and digital services companies should be prepared for immediate tax compliance despite the registration extension to be sure they meet all filing requirements and implement proper VAT procedures.

The International Monetary Fund (IMF) has recommended Romania increase its VAT rate by 2% to address its national deficit. Political uncertainty and an unfavorable global economy threaten Romania's growth targets for 2025 and 2026. The country’s state debt is also expected to climb to 58% of GDP within the next year, further endangering fiscal goals. However, Romanian president-elect Nicusor Dan recently indicated that his new government is unlikely to implement the VAT increase. 

The bottom line: The country’s current VAT rate sits at 19%. The IMF is recommending two 1% VAT rate hikes between 2025 and 2027, bringing the country’s rate up to 22%.

Starting January 1, 2026, Illinois will remove its 200-transaction economic nexus threshold, meaning remote sellers will only trigger sales tax obligations if they exceed $100,000 in Illinois sales. These tax changes are all part of the state’s House Bill 2755, which still awaits Governor Pritzker’s signature. The bill also creates two tax amnesty programs: The first targets remote retailers and runs from August 1, 2026 to October 31, 2026. It applies to 2021-2026 transactions with simplified rates—9% for most items and 1.75% for food. The second program serves all taxpayers and runs from October 1, 2025 to November 15, 2025, covering tax periods from mid-2018 through mid-2025. Neither program charges interest or penalties.

The bottom line: Illinois is joining states like New Jersey and Utah who have recently decided to eliminate their transaction threshold. These changes will make tax compliance easier for small online businesses selling into the state. However, businesses with high transaction volumes but lower revenue could feel the negative effects of these reforms.

Starting July 1, 2025, Maryland will apply a 3% sales and use tax rate to data or information technology services and system software or application software publishing services. The state’s standard tax rate is 6%. The tax will apply to both business-to-business (B2B) and business-to-consumer (B2C) transactions, with the legislation allowing for potential rate increases in the future. Maryland will, as a result, adopt a multiple points of use (MPU) exemption starting July 1, 2025.

The bottom line: In early 2025, Maryland considered expanding taxes to cover more B2B services at a 2.5% rate. The proposal failed, despite estimates that it would have raised about $944 million in 2026. The state now faces a difficult situation: it plans to cut $2 billion from its budget but still needs to find $1 billion in new tax revenue to balance its books. Officials want to expand sales taxes to modernize what they consider an outdated tax system.

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