Google recently announced that it will be adding a digital services tax fee to Google Ads spend for adverts served in the UK, Turkey and Australia. In the UK the cost will be 2% of ad spend, paid monthly. Google’s email announcing the change said that the fee is “driven” by the new digital service tax:
The Regulatory Operating Costs are being added due to significant increases in the complexity and cost of complying with regulations in Turkey. In Austria and the United Kingdom, the DST Fee is driven by the new digital services tax in these countries.
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. We will continue to pay all the taxes due in the UK, and to encourage governments globally to focus on international tax reform rather than implementing new, unilateral levies.
The new fees come into place from November. They will be added on top of ad spend, based on the number of clicks in relevant countries. As an example, if your monthly budget is set to £5,000, and you spend the full amount in November, your overall charge will be £5,100. Full details of when and how the fees are charged can be found here.
At Optix we can help you to make the most of your ad spend by continually optimising campaigns, implementing best practice and testing new approaches. Our expert team can ensure your budget is providing a significant return on investment and helping you to achieve your business goals. If you would like our help please get in touch today.