What is Changing?
Starting in October, Google will be introducing a Digital Services Tax (DST) of 2.5 % on all ad spends for ads served in Canada. This new tax is a regulatory requirement and will result in additional charges on your Google ad account. There are already DST fees in effect for other countries including Austria, France, India Turkey and others but since your ads have not been targeting users in these countries the charges have been under $1 per month, if any at all.
How Does This Affect You?
If you are billed directly by Google for your ads, it is important to note that these DST charges will be added to your existing media spend. This means that your total monthly spend will increase by the amount of the DST: 2.5% of the cost of ads served in Canada.
Your Billing Details:
- Current Ad Spend: Your media spend on Google ads will remain dedicated to ad placements.
- DST Charges: These will be billed separately by Google and added on top of your existing spend.
We recommend reviewing your budget to accommodate these additional charges starting in October. If you need assistance in understanding how this change impacts your overall spend, please feel free to reach out to us.
If you are a client whose media spend is included on your bill from Red Carpet Web Promotion we will contact you by email with options.
We’re Here to Help
If you have any questions or need further clarification, please do not hesitate to reach out to us.