Google is set to implement a 2.5% surcharge on ads served in Canada, effective 1 October 2024. This new fee, referred to as the “Canada DST Fee,” will be added to Google Ads invoices to cover compliance with Canada’s digital services tax (DST) legislation.
For ads served in Canada, businesses will see the surcharge as a separate line item on their invoices or in the “Transactions” section of their Google Ads accounts.
This fee applies to both automatic and manual payments, and it will be charged on top of account budgets. For instance, if a company sets a budget of $100, they will be billed $102.50 after the DST fee. This fee is also subject to any additional taxes such as VAT, GST, or QST that apply in the advertiser’s jurisdiction.
For those using YouTube placements on a reservation basis, the same surcharge will apply. Advertisers will see the DST fee reflected in the budget of their media plans.
Google has indicated that these fees are not limited to Canada, as jurisdiction-specific surcharges apply based on the location where ads are served, regardless of where the business is located. These additional costs stem from regulatory expenses related to digital services taxes in various countries.
Advertisers are encouraged to review and adjust their targeting settings, as Google will not refund DST fees incurred from legitimate ad impressions served in unintended countries.
This surcharge update highlights the growing trend of digital services taxes being introduced worldwide, which is likely to impact advertisers’ budgets.
Marketers targeting Canadian audiences should plan for this additional cost, as it will directly affect their campaign expenses. Ensuring campaigns are optimized for the right regions will become even more crucial to manage these new surcharges effectively.
