Google will comprise a 2℅ “Regulatory operating cost” surcharge to advertisers according to an email sent to Google advertised on Tuesday, invoices for ads served in India and Italy. This tax will be applied on a reservation basis to ads purchased through Google ads and for Youtube placements.
Google was already charging this surcharge to advertisers for ads on digital services in Austria, The UK, France, and Spain. This additional tax will be commenced from October in India and Italy too.
Google has been doing this for some time but added a few more new countries to the list.
How will this surcharge impact Google advertisers?
Advertisers have a decided budget through which they serve advertisements. Advertisers must consider the new surcharge implementation while making a budget for advertisements.
Advertisers should be aware of this additional charge while running a campaign as this could become an obstacle if you neglect it.
Besides, as Greg Finn, partner at digital agency Cypress North, advised on Twitter when Google first announced that it will be enacting this surcharge last year, applying the “People in your targeted locations” setting can result in accumulating more surcharges.
Google will add the surcharge for the good Ads at the end of the month. The surcharges are accountable to any taxes, such as sales tax, VAT, GST, or QST that apply in the advertiser’s jurisdiction.