A new tax on your digital advertising investments
As of October 1ᵉʳ, 2024, a new tax related to DST (Digital Services Tax) will be added to your invoice or statement for ads served in Canada. This means that invoices or statements for ads served on or after that date will show a 2.5% tax. Google will charge this new tax to cover a portion of the costs associated with complying with the Digital Services Tax (DST) regulations in Canada.
You can consult more detailed information on this tax, but here are the main changes to come.
Only for ads purchased via Google Ads (for the moment)
Separate billing: This tax will appear on a separate line of your invoice or statement for Canada. It will also appear in the "Transactions" section of your Google Ads account. This tax will be applied to ads served in Canada.
Applicable taxes: This new tax will also be subject to any taxes applicable in your country (e.g. sales tax, VAT, GST or QST).
Monthly billing or automatic payment: If you have opted for monthly billing or automatic payment, this tax will be added to your account budget.
Manual payment: If you have opted for manual payment, this fee may be charged once your payment has been fully spent. If you still have a balance to pay, it will be automatically deducted from your next prepayment.
For Google Ads account holders who have already added their GST and QST numbers, you should know that these taxes will not be applied to your invoices. However, it's not yet clear whether this new 2.5% DST will also be exempt.
In summary, as of October 1ᵉʳ, 2024, a 2.5% tax will be added to invoices or statements for ads served in Canada to cover costs related to the Digital Services Tax. Be sure to factor this change into your future advertising budgets to avoid any surprises on your statements. We can also expect that in the coming months, Meta (Facebook Ads) will follow suit and do the same as Google Ads for billing this tax.
Source: https://support.google.com/google-ads/answer/9750227?hl=fr&sjid=294830963097894561-NA
