Google Passes on 2% Tax to its UK Advertisers

From November, businesses advertising on Google Ads (formerly AdWords) will be charged an additional 2% of their click costs.

For advertisers running ads in Austria and Turkey, they will now see a 5% charge from 1st November. The additional fees will be added to advertisers’ invoices as ‘transactions’. 

google announce 2% tax charge to advertisers in the UK
The announcement was made via an email on 1st September

The change comes from the announcement earlier this year, that the government will be charging digital service companies 2% tax. 

A full rundown of Google’s service fee changes can be found here: https://support.google.com/google-ads/answer/9750227

So far, other PPC platforms do not appear to be doing the same. Facebook and Bing (Microsoft Ads) have not announced anything about passing on these charges. We have also been made aware that Amazon decided to pass on the 2% charge to its sellers. eBay has not followed suit.

We understand that this comes as a bit of a blow to businesses who use Google Ads, particularly after what some have seen as an especially turbulent year. If you require any further information or if you would like help with adjusting budgets, get in touch with us today: info@alixdigital.com

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