Google’s Advertisers Will Shoulder UK’s Digital Service Tax Costs

When it comes to looking up services and useful information like a king kong marketing agency review, Google is generally considered the one to turn to. As a result, a lot of organizations fight hard to get a spot in Google’s ad spaces. Naturally, there are fees for that, as Google looks to make a profit, like any other company.

However, UK advertisers looking to advertise their king kong marketing agency review or anything else will be paying a bit more, as Google will be passing on the cost of the UK’s new digital services tax to their clients, which is expected to add at least £120m in annual expenditures for marketers. The UK digital services tax went into effect in April 1, 2020, and is aimed at trying to get tech giants to pay more taxes.

In turn, Google announced sometime around August of the same year, that they’ll be charging more for ads on Google and YouTube, appropriate to the digital service tax of the country the advertiser is operating in. For the UK, that amounts to a 2% increase, while Austria and Turkey will see an increase of 5%.

Before Google made this announcement, Amazon said that they’ll be passing the 2% tax to any people that’ll be selling on their platform. With Google following, Facebook, which has an estimated £4.2bn of ad revenue in the UK, is expected to follow on the matter as well.

Google issued a statement on the matter, saying that digital service taxes increase the costs of advertising digitally, and that they’ll be adding a new fee to their invoices starting November 2020. The tech giant says that they’ll pay all the taxes that they have due in the UK, and encourage the governments in the world to work together on international tax reform.

Earlier in June 2020, European countries, the UK among them, stated that they’ll be implementing digital services taxation with the help of the OECD, in spite of the US walking away from the negotiating table in order to create a version that’ll be accepted and implemented as the global standard.

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