Advertisers to absorb Google’s digital services taxes in UK, Austria, Turkey


Google notified advertisers on Tuesday of new fees for ads running in the UK, Turkey or Austria. The company is undergoing a new digital services tax (DST) in all three countries.

What is changing? From November 1, advertisers running advertisements in these countries will be charged an additional fee:

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

In addition, “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 QSTs that apply in your country will be charged in addition to the new fees, ”Google notes on its Help page about country fees.

The UK’s DST has been in place for several years and was announced in March. The tax aims to collect at least 500 500 million in global revenue and 25 25 million in revenue from digital companies, such as Google, Amazon, and Facebook.

Not just Google. In early August, Amazon informed sellers that it would be subject to 2DST in the UK from September 1. The fee applies to referral fees, Amazon (FBA) fees, monthly FBA storage fees and Multi-Channel Completion (MCF) fees, the company said.

A Google spokesman told Citi AM in the UK: “In general, this kind of price increase is borne by consumers, and like other companies affected by this tax, we will add fees to our invoices from November.”

It is unclear if Facebook also plans to pay the tax to advertisers. As of January 1, it began to include 6% service tax on advertisements sold in Malaysia in advertisers’ receipts.

How to prepare for this change

Budget Note that these fees will be added “at the top of your account budget,” so be prepared to do this in your budget process.

If you have made a fee, these fees will be added to your account budget. For example, if your budget in Austria is € 100 and the DST fee for advertising in Austria is € 5, you pay € 105 (plus any taxes, as may apply in your country). Will be done “Google says on the help page.

In addition, “If you pay by manual payments or pay on your self-payment account, this payment may be received after your payment has been fully processed.”

Get started Evaluating the effects. This also means that taxes will not be included in your campaign reporting per metric cost per conversion.

If you market goods and services through Google ads in the UK, Austria and / or Turkey, be prepared to levy relevant taxes on each acquisition (CPAs) based on your spending starting in November. You can now start looking at your performance so you know what your new acquisition costs will be and make changes to try to keep your campaigns effective.

E-commerce sellers, for example, should look at the effects of these taxes on their revenue margins.

Goal settings. Advertisers should take a look at their campaign settings, Greg Finn, Partner of digital agency Cyprus North, advised on Twitter. With this extra charge, Finn notes, the “in your targeted locations or official people” setting takes a new risk. “Make sure you plan for locations in Turkey, Austria and the UK if you don’t want to serve there.” They said.

Below is an excerpt from an email Google sent to advertisers on Tuesday.

The post Advertisers to absorb Google’s digital service tax in UK, Austria, Turkey appeared first on Search Engine Land.

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