October brought several key VAT and sales tax developments across the U.S. and Europe — from Washington State expanding its tax base to new EU consultations on ViDA and e-commerce reforms. Here’s what you need to know this month.

United States

Washington State expands sales tax to advertising and retail services

Washington State has broadened its sales tax base to include digital and traditional advertising services from October 2025.

The move aims to capture revenue from a growing sector previously outside the state’s tax scope, including online ad placement, influencer marketing, and digital campaign management.

Retail services are also now subject to sales tax, marking one of the most significant state-level tax expansions in recent years.

Missouri publishes Q4 sales and use tax updates

The Missouri Department of Revenue has released its Q4 2025 list of local sales and use tax rate changes.

Updates include rate adjustments across multiple cities and counties, effective October 1, 2025, with businesses encouraged to review new jurisdictional rates to ensure compliance.

Visit the Missouri Department of Revenue website for more information.

Texas expands tax on marketplace fees

Texas has clarified that platforms like Poshmark and similar marketplaces must now collect sales tax on certain seller fees.

This change aligns with the state’s broader marketplace facilitator rules, ensuring consistent tax treatment across digital sales channels.

Alabama: Vernon increases local tax rates

Effective October 1, 2025, the City of Vernon has implemented several local sales and use tax rate increases:

• The general sales and use tax rate, along with the rate on admissions to places of amusement and entertainment, and the retail selling price of food for human consumption sold through vending machines, has increased from 3% to 4%.
• The sales tax rate on machines, machinery, and equipment used in planting, cultivating, and harvesting farm products, and on machines and parts or attachments used in manufacturing tangible personal property, has risen from 1.5% to 2%.
• The sales and use tax rate on automotive vehicles, truck trailers, semi-trailers, and house trailers, as well as the use tax rate on agricultural and manufacturing machinery, has increased from 1% to 2%.

Florida repeals sales tax on commercial real‐property leases

Effective October 1, 2025, Florida has eliminated the state sales tax and any local discretionary sales surtax on commercial lease payments of real property (office space, retail units, warehouses, etc.) under § 212.031 F.S. 

The repeal excludes short-term residential rentals, parking spaces, boat slips, and aircraft hangars under § 212.03. For occupancy periods beginning October 1 or later, no sales tax is due; earlier periods or payments relating to earlier occupancy remain taxable. Landlords and lessees should review existing lease agreements, payment schedules, and file required returns accordingly.

Europe

France ends VAT simplification for non-EU importers

France has announced the end of VAT simplification rules for non-EU importers.

From now on, businesses outside the EU must register directly for French VAT when selling goods imported into France, rather than using intermediaries.

This change could significantly impact non-EU e-commerce sellers using fulfillment centers or shipping directly to French customers.

Latvia considers a temporary VAT cut on basic food items from July 2026

Latvia’s Finance Minister has announced plans for a temporary reduction in VAT on essential food items, aimed at easing pressure on households coping with persistent inflation. The proposal forms part of the government’s 2026 draft budget discussions.

From 1 July 2026, the VAT rate for basic products such as bread, milk, eggs, and fresh poultry could be reduced for one year. The government describes the move as a necessary short-term measure to cushion the impact of rising food prices — a key driver of Latvia’s inflation in 2025.