Advertisers will be greatly impacted by the Digital Service Tax from UK, Austria and Turkey

Google has recently announced about the new Digital Service tax costs. This Digital Service tax costs will be imposed upon the advertisers of the UK, Austria and Turkey. The new rules will be starting on November 1st. The advertiser from these countries will be going through a lot due to the UK’s new Digital Service Tax. The additional cost will be directly passed to the advertisers of the following countries. The fees will be imposed at the starting of November month to all of the advertisers. Those who are running ads in Austria and Turkey will have to pay 5% of the tax. The people who are running their advertisements in the UK will have to pay 2% of the tax. Most importantly the business of the advertisers will be highly impacted.

As per the official statement from the Google’s help page, it is said that “Any taxes, such as sales tax, VAT, GST, or QST that apply in your country will be charged in addition to the new fees,”. This is clearly not a very good sign for all of the advertisers. They will have to pay sales tax plus the additional tax. The Digital Service Tax is launched to target the great digital media companies situated in the UK. The names of these companies are Google, Amazon and Facebook. The tax will target digital companies having a threshold of least £500m in revenue.

Facebook has not commented on the issue yet. Although, Amazon has recently announced its increase in the month of August. The increase will be starting from 1st September. The new tax will be highly impacting the monthly budget of the advertisers. The advertisers can thoroughly check out the proportion of their spend and targets towards the UK, Austria and Turkey so that they can calculate the overall impact due to this tax. If they want they can also block their ads from these countries.