Google Passes Digital Service Tax onto Advertisers
**2 September 2020**
What you need to know:
👉 In April this year, the British government introduced a 2% tax on the revenues of search engines, social media services and online marketplaces which derive value from UK users.
👉 Last week, Google announced that from 1st November, it will pass on the tax to advertisers by way of a 2% charge
👉 Google will add the fees to your Google Ads costs once at the end of every month, to be paid the next time you are charged
👉 The charges apply to ads served in the UK (2%), Austria (5%) and Turkey (5%)
👉 Any taxes, such as sales tax, VAT, GST, or QST that apply in your country will be charged in addition to the new fees
👉 You will be charged based on which countries the impressions or clicks show in.
🤷♀️ Although it was not unlikely that Google would at some point choose to pass on the cost of the tax, the announcement has come as an out-of-the-blue surprise to all in the industry.
🔍 We should be prepared for other advertising platforms such as Facebook, Microsoft (Bing) Ads and LinkedIn to follow Google’s lead, however we have not yet been made aware of imminent plans from any of them.