From the 1st of November 2020, Google will charge an additional fee for ads in Austria, Turkey, and the UK. What caused the change and how will it work?
New fees are going to be charged for ads displayed in 3 countries:
- An operating cost of 5% of the invoice value will be added to invoices for advertising in Turkey.
- The same cost will be added to the invoices for advertising in Austria.
- Invoices for advertising in the UK will be additionally charged the cost of 2% of the invoice value.
Why? In Turkey, the additional fees are a result of the significant increases in the complexity of complying with Turkish law regulations. In the case of Austria and the UK – in these countries, a new Digital Service Tax (DST) was recently introduced.
Country-Specific Fees In Practice?
- New fees will be detailed in the invoice for each country. They will also appear in your Google Ads account in the “transactions” tab.
- It’s important to remember that invoices for advertising will still include fees characteristic for each country such as VAT, GST, or QST.
- If you’re using monthly invoicing or automatic payments the fees will be automatically added to the account budget. For example, if your budget in Austria is €100 there will be added €5 DTS fee and other fees applicable in your country (e.g. VAT).
- For manual payments, fees may be applied after account funds have been used. Your account balance will be active and the fees will be deducted from the next deposit.
More about the mechanism of calculating payments for displaying ads in different countries on the official Google website: https://support.google.com/google-ads/answer/9750227?hl=pl