#Google Ads introduces new surcharges for specific jurisdictions
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Google will introduce a 2.5% Digital Services Tax (DST) fee on Oct. 1 for ads served in Canada to cover regulatory costs in various countries.
Why we care. These new fees, such as the Canada DST Fee, will increase advertising costs for businesses targeting audiences in affected jurisdictions, regardless of the advertiser’s location.
By the numbers:
- 2.5% Canada DST Fee starting Oct. 1.
- Surcharges apply to ad impressions or clicks served in specific jurisdictions
How it works:
- Surcharges are added to monthly invoices or statements as separate line items.
- For automatic payments and monthly invoicing, fees are added at month’s end.
- Manual or prepayment accounts may see charges after payments are spent.
Between the lines. Google cites “regulatory operating costs” and compliance with Digital Services Tax legislation as reasons for the new fees.
What to watch:
- Impact on advertising budgets and ROI for campaigns targeting affected jurisdictions
- Potential expansion of similar fees to other countries
Bottom line. Advertisers need to closely monitor their campaign settings and target locations to manage these new costs effectively.
Anu Adegbola has been Paid Media Editor of Search Engine Land since 2024. She covers paid search, paid social, retail media, video and more.
In 2008, Anu’s career started with delivering digital marketing campaigns (mostly but not exclusively Paid Search) by building strategies, maximising ROI, automating repetitive processes and bringing efficiency from every part of marketing departments through inspiring leadership both on agency, client and marketing tech side.
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