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.

Google is implementing jurisdiction-specific surcharges for ads served in certain countries, impacting advertisers globally.

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.