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.

Maryland Tax Court concluded evidentiary hearings on July 29 in Apple and Google's challenge to the state's Digital Ad Revenue Tax under the federal Internet Tax Freedom Act. Apple argued that adding "programmatic" features doesn't make digital ads dissimilar to non-digital ads, while Maryland's expert testified that digital ads' automation and targeting capabilities make them fundamentally different. Maryland also issued Technical Bulletin No. 59 applying retroactively to tax year 2022.

The bottom line: The court's ruling on whether Maryland's 2.5% to 10% tax on digital ad revenue violates federal anti-discrimination law could determine if other states can implement similar taxes targeting tech companies with over $100 million in annual revenue.

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.

Bhutan's National Assembly approved the GST (Amendment) Bill, establishing a 5% goods and services tax (GST) effective January 2026. This reform will replace the country's current sales tax and excise tax systems, removing numerous existing tax exemptions while introducing input tax deduction rights for businesses. Foreign digital service providers must register with tax authorities and charge GST on their services. 

The bottom line: Companies operating in Bhutan should prepare for the January 2026 implementation, which includes a BTN 5 million annual registration threshold. While the standard rate will be 5% on domestic supplies and imports, exports and certain other supplies will be zero-rated or exempt.

Illinois has set the dates for its 2025 Tax Amnesty Program to run from October 1, 2025, through November 17, 2025. The program, established under HB 2755, allows taxpayers to pay outstanding tax liabilities for periods ending after June 30, 2018, and before July 1, 2024, with penalties and interest waived if paid in full during the amnesty period.

The bottom line: Businesses with unpaid Illinois tax liabilities from mid-2018 through mid-2024 can take advantage of penalty and interest relief by paying their full outstanding balances between October 1 and November 17, 2025.