Google has made updates to their ad fees in a few European countries. Here is what we know:
On November 1st, advertisers serving in the United Kingdom, Austria, and Turkey began to see fees on their Google Ads monthly invoices specific to each country. Google stated in an email to its customers that the additional fees will be added onto advertisers’ Google Ads costs at the end of each month. These additional fees are added to the overall account budget. According to MediaPost, “when advertisers have a budget of €100 and accrue €5 in Austria DST Fees for ads served in Austria, marketers will be billed €105, plus taxes, such as VAT, that may apply in the specific country.”
Below is a breakdown of the ad fees for each country:
Where are these fees coming from?
According to the email, in Turkey, Google’s Regulatory Operating Costs are being added due to the increase in cost and complexity of complying to the country’s regulations. Meanwhile, in the U.K. and Austria, the DST fee is driven by the new digital services tax. This digital service tax (DST), which came into play on April 1st, introduced a 2% tax on revenues generated on search engines, social media services, and online marketplaces from UK users. In addition, Google also will apply a 5% Austria DST fee for ads served there, and a 5% regulatory operating fee in Turkey.
Where can advertisers find these fees?
These fees will show on a separate line item per country in the advertiser’s invoice or statement. Advertisers can also access this information regarding these fees in the “Transaction” section of the Google Ads account.
How should advertisers prepare?
Google provides tips on adjusting ad account budgets in response to the increase in taxes, fees, and regulatory charges. To edit a budget, advertisers need either an Admin, Standard, or billing-only access to the manager account responsible for paying. Here, advertisers can adjust their budget while considering the increases their account may face.
What is the bottom line?
Starting November 1st, any ad served in the U.K. will have an additional 2% fee and any ad served in Turkey and Austria will have an additional 5% fee. It is important to be aware of these additional fees so advertisers can adjust their budgets and marketing plans accordingly.