Google – Update to Digital Services Tax

Digital Service Tax

Earlier this week, marketers and agencies were notified of upcoming changes to the tax they or their clients will pay when running ads through Google’s ad network.

From November 1st, anyone who is running paid advertisements in the countries listed below will notice the following additional charges being applied to their ad invoices:

  • 5% in Turkey.
  • 2% in the UK.
  • 5% in Austria.

These changes come as a result of changes to Digital Services Taxes (DST) which were announced earlier this year.

Why This Matters

As these charges will be applied on top of current ad-budgets, the new DST will need to be considered when assessing overall ad spent and monthly budget allocation. In some cases, budgets may need to be reduced to compensate for the additional out-cost.

Google explains more about the impact of this new charge, as well as outlining how these costs will be calculated on their dedicated DST help page. 

Want to Learn More?

If you’d like to learn more about the introduction of Google’s new DST, or would like to discuss the potential impact this may have on your ads account, please feel free to get in touch with a member of our digital marketing team.¬†

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