Google announce 2% Digital Services tax

Google recently announced that they will be passing the new digital services taxes (DST) onto advertisers in the UK, Austria & Turkey.

The new legislation was introduced back in April, but starting on 1st November 2020, advertisers running ads will be charged 2% in the UK (and the new fees will also be subject to VAT).

The fees will be charged on top of your normal budgets, so will have to be factored in to marketing budget allocations accordingly.

Furthermore, the fees won’t be included in cost per conversion metrics in campaign reporting, and the impact on product margins for ecom clients will need to be considered too. 

Facebook hasn’t announced any plans yet, but Amazon started applying it from September. As such, it's likely that Facebook will indeed start charging the fee in due course.

Learn more here