New Fees for Google Advertisers in UK, Austria and Turkey
A new Digital Services Tax (DST) is being imposed in Europe as part of the Government’s attempt to get big tech giants to pay more to the exchequer. However, Google have decided to pass this tax onto advertisers in the UK, Austria and Turkey, from the 1st of November 20202. This means that anyone running Google or YouTube Ads in these three countries will absorb Google’s DST, increasing their overall marketing costs (2% in the UK and 5% in Austria and Turkey). This fee is in addition to other costs, such as VAT and sales tax etc.
There has been talk of a DST for around two years, but the change was eventually announced in March this year. Amazon have also passed this charge onto clients and it is likely that Facebook will shortly follow. Of course, this news has been met with dismay from advertisers based in the three countries and, as such, it is crucial that they factor this new cost into their current budget.
In order to ensure you are ready for this change and continue running efficient campaigns, it would be wise to evaluate the impact in advance by assessing how this new fee will impact your costs-per-acquisitions. If you have any queries or would like some support readying for this new fee, please don’t hesitate to contact us and our paid advertising specialists will be happy to help. Our number is 01707 875 721.