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Washington Imposes Sales Tax on Digital Ads: Higher Costs for Amazon Sellers Starting October 2025

  • Washington State now imposes sales tax on digital advertising, effective October 1, 2025.
  • Ad platforms like Amazon and Meta are charging this tax for customers with Washington billing addresses, increasing ad costs.
  • The tax rate can reach up to 10.4% in some Seattle districts, significantly impacting seller margins.
  • The law affects sellers, agencies, and finance teams with Washington billing addresses; advertisers outside WA are not affected (yet).
  • This move is part of a broader trend to tax digital services, and other states may follow Washington’s lead.

Source: taxcloud.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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