The tech giant, Google, has announced that the advertisers in the United Kingdom (UK), Austria, and Turkey will be absorbing the new Digital Service Tax costs starts from November 1st.
The advertisers, who advertise their businesses on different digital media platforms, in the United Kingdom (UK), Austria, and Turkey are going to feel the impact of the new Digital service Tax (DST). According to the details, the additional cost will be passed directly through the advertisers.
The newly implemented tax will be started from November 1 and the details further said that the advertisers running their Google ads in Austria and Turkey will have to pay a 5% tax, and the advertiser in the United Kingdom (UK) will have 2%.
It is pertinent to mention here that any taxes, such as sales tax, VAT, General Sales Tax, or QST that apply in your country will be additionally charged with the new fees, clarified Google help page.
The key targets of the Digital Service Tax (DST) are the most prominent digital media companies such as Google, Amazon, and Facebook. The threshold is for the digital media companies that have at least £500 million in revenue and specially £25 million in the United Kingdom.
The world’s top e-commerce company, Amazon, has announced the increase in August, with a start date of September 1. The fee applies to a range of their services, which differs some from a more straightforward ad environment such as Google Ads. Due to their e-commerce services, the fees applied with included Fulfillment by Amazon and fulfilment fees.
The social media giant hasn’t issued any statement related to the subject yet, but it is expected they will issue a similar statement and process.
How New Taxes Impact the Advertisers
The newly implemented taxes will be an addition to the monthly budget of the advertiser. The advertisers in these countries will pay the total of their ad charges and then a separate line item for this tax.
The company, Google, has also noted that if an advertiser uses the manual or prepayment, this might result as an additional charge. It will not apply the taxes to the prepaid funds.