Google has announced a new surcharge for ads served in Canada, impacting businesses that use Google Ads to reach customers. If you run Google Ads campaigns, it’s crucial to be aware of these changes and how they will affect your advertising costs.
What Is the Canada DST Fee?
Starting October 1, 2024, Google will add a 2.5% Digital Services Tax (DST) fee to your Google Ads bill for ads served in Canada. This fee is part of Google’s response to the Canadian government’s Digital Services Tax legislation, which is designed to collect taxes from global digital services providers.
This surcharge will be applied to your ad spend regardless of where your business is located. Even if your company operates outside of Canada, you will be charged the Canada DST Fee if your ads are shown to users within Canada.
How Does This Impact Your Google Ads Budget?
The 2.5% surcharge will be added to your total Google Ads costs, affecting how much you ultimately pay. For example, if your monthly Google Ads budget is $3,600 CAD, you’ll see an additional $90 CAD (2.5%) surcharge on your invoice, bringing your total monthly cost to $3,690 CAD.
These surcharges apply to all payment methods—whether you’re using automatic payments, manual payments, or invoicing. In addition, the DST fees will be subject to any relevant taxes such as sales tax, VAT, GST, or QST in Canada.
Where Will You See These Surcharges?
To help businesses track these costs, Google will display the DST Fee as a separate line item on your monthly invoice or statement. You can also view it in the “Transactions” section of your Google Ads account. This transparency allows you to clearly see how much you’re paying in additional fees for ads served in Canada.
Why Is This Important for Canadian SMBs?
As a Canadian business, it’s essential to be aware of how these new fees can affect your advertising strategy. This change increases the overall cost of running ads in Canada, which may impact your return on investment (ROI). At Zigma.ca, we understand the complexities of managing ad budgets and are here to help you optimize your Google Ads campaigns to make every dollar count.
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!