Important Google Ads Update: 2.5% Canada DST Fee Introduced in 2024 — and Removed in 2025

by SEO Specialist | Originally Published: Sep 24, 2024 | Updated: July 30, 2025

📢 July 2025 Update: As of July 1, 2025, Google has officially removed the 2.5% Canada DST Fee on ads served in Canada. This follows the Canadian government’s plan to repeal the Digital Services Tax legislation. Refunds will be processed once the repeal is formally passed. Jump to details ↓

What Was the Canada DST Fee?

Starting October 1, 2024, Google began adding a 2.5% Digital Services Tax (DST) fee to ad costs for ads served in Canada. This fee was in response to Canadian legislation aimed at taxing large digital platforms operating within the country.

The surcharge applied to all advertisers—regardless of where your business was based—so long as your ads reached Canadian users.

How Did the DST Fee Affect Google Ads Budgets?

From October 2024 to June 2025, the 2.5% fee was added to your total monthly ad spend. For instance, a $3,600 CAD budget would result in an additional $90 CAD in DST charges, bringing your actual invoice total to $3,690 CAD.

This charge was applied across all payment types and was itself subject to regional taxes such as GST, QST, VAT, or sales tax depending on your location.

Where Did the DST Fee Appear?

Google listed the DST fee as a separate line item in your Google Ads monthly invoice and in the “Transactions” section of your account for transparency and tracking purposes.

Why Was the Fee Important for Canadian SMBs?

For small and medium-sized businesses (SMBs) in Canada, the DST fee temporarily increased the cost of digital advertising. This required marketers and advertisers to adjust their budgets and bidding strategies accordingly during Q4 2024 and the first half of 2025.

Update: Google Ends the Canada DST Fee in 2025

Effective July 1, 2025, Google has stopped applying the 2.5% DST surcharge on ads served in Canada. This decision follows the Canadian government’s public commitment to repeal the DST legislation.

The 2.5% DST Fee no longer appears on invoices or statements for Canadian-served ads.
Display & Video 360 users may still see DST fee reporting for July, but charges will not be applied.
Refunds for DST fees incurred prior to the repeal will be processed once the legislation is formally reversed.
Other taxes such as GST, QST, VAT, or sales tax still apply.

Google advertisers in Canada should monitor their billing statements for refund updates and work with their advertising teams to recalibrate budgets now that the surcharge is gone.

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Need Help Managing Your Google Ads Budget in Canada?

At Zigma.ca, we stay on top of every platform update so you don’t have to. Whether you’re adjusting campaigns post-DST removal or preparing for seasonal performance trends, our team of digital ad experts can help you get the most from your budget.

📞 Contact us today for a free consultation on optimizing your ad spend now that the DST surcharge is off the table.

Unlock $1,800 in Google Ads Credit

While the introduction of the Canada DST Fee might increase your ad costs slightly, there’s good news. Google is offering a special incentive for new advertisers! If you spend $3,600 CAD on Google Ads within the first 60 days of signing up, you’ll receive a $1,800 CAD ad credit, which you can use to extend the reach of your campaigns.

Why Partner with Zigma.ca?

At Zigma.ca, we are one of the best PPC agencies in Canada, specializing in helping small and medium-sized businesses (SMBs) maximize their ad spend and navigate updates like this one from Google. Our team of experts can guide you through these changes and optimize your campaigns so that the Canada DST Fee doesn’t negatively impact your marketing performance.

How Can Zigma.ca Help You?

Maximizing Your Budget: We’ll help you adjust your campaigns to account for the new surcharge and ensure that your ad spend is optimized to drive the best results.
Navigating Google Ads Updates: Google regularly updates its ad policies, and we keep you informed and compliant. Whether it’s new fees, regulations, or tracking changes, we’ve got you covered.
Taking Advantage of Offers: We’ll ensure you qualify for offers like Google’s $1,800 CAD ad credit to make your ad budget go further.

Ready to Grow Your Business with Google Ads?

Contact Zigma.ca today to start your campaign and benefit from our expertise. We’ll help you make the most of your Google Ads investment, navigate the new Canada DST Fee, and take advantage of Google’s $1,800 CAD ad credit offer. Act now before the offer expires!