Google told the advertisers on Tuesday about the New Digital Services Taxes on the ads that will run in the UK, Austria, and Turkey. It will start from November 1, and additional tax will be charged accordingly:
- 2% in the UK.
- 5% in Austria.
- 5% in Turkey.
“The new fees will be subject to any taxes, such as sales tax, VAT, GST, or QST that apply in your country. Any taxes, such as sales tax, VAT, GST, or QST that apply in your country will be charged in addition to the new fees,”
Google is targeting to increase its revenue with at least £500 million in global revenue and £25 million in U.K. revenue, such as Google, Amazon, Facebook.
Not only Google, even Amazon told its sellers about the UK’s 2% DST on them starting from September 1. Amazon told fee applies to referral fees, fulfillment by Amazon (FBA) fees, monthly FBA storage fees, and multichannel fulfillment (MCF) fees.
“Typically, these kinds of cost increases are borne by customers and like other companies affected by this tax, we will be adding a fee to our invoices, from November,”
Preparation For the Change
All these fees will be charged “on top of your account budget”, so make the budget accordingly.
“These fees will also be added on top of your account budget if you’ve set up one. For example, if you have a budget of €100 and accrue €5 in Austria DST Fees for ads served in Austria, you’ll be billed €105 (plus any taxes, such as VAT, that may apply in your country),”
“If you pay through manual payments or make a prepayment on your automatic payments account, these fees may be charged after your payment has been fully spent.”
Additionally, this is why @GoogleAds
"People in or regularly in your targeted locations"
is so dangerous.
— Greg Finn (@gregfinn) September 1, 2020