Meta will pass on the cost of the digital services tax to advertisers

Golden Ten Data, March 10 – Meta Platforms (META.O) is requiring advertisers to bear the cost of digital services taxes, which are levies imposed by various countries on technology companies for local sales. The company notified advertisers via email that it will charge a new “location fee.” This fee will apply to digital ads served in certain countries, even if the advertiser is not based in those countries. The additional charge will take effect on July 1. Meta stated in the email that it had previously absorbed these costs itself. Both image ads and video ads will be affected. This policy will apply to Austria, France, Italy, Spain, Turkey, and the United Kingdom. The digital services tax rates are 3% in France, Italy, and Spain; 5% in Austria and Turkey; and 2% in the UK. Meta wrote in the email: “If you run an ad worth $100 in Italy and the local location fee is 3%, you will be charged $100 (ad spend) plus $3 (location fee), totaling $103.”