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Google to make UK advertisers pay 2% digital sales tax

© Solen Feyissa

Google issued an email to its advertisers today stating that they would have to incur a 2% surcharge in relation to the UK’s new Digital Services Tax.

The tech giant in an email released today said that advertisers would begin to pay the charges from 1st November, with the new cost appearing as a separate item on invoices. Other countries have also been included in the list including Turkey and Austria.

“These fees will be shown on your invoice or statement as a separate line item per country. They will also be displayed in the “Transactions” section of your Google Ads account. You’ll be charged for advertisements served in the countries mentioned above.”

The email also stated that automatic payments would include the separate charge of the DST fee. In addition, manual payments would then be followed up with a separate fee that could be deducted from future repayments on various Google services.

In 2020, the UK government announced its new Digital Services Tax, which levies a 2% tax on the revenues of large social media companies, search engine operators and online marketplaces. The new tax has been controversial and is aimed at creating a level-playing field between online sales and offline retailers.

However, in the case for Google, its customers will have to pay the DST, which will increase costs for advertisers operating in the UK’s digital economy.

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