Advertising Trends
Since October 1, 2024, digital advertisers in Canada have been feeling the effects of the new Digital Services Tax (DST), thanks to a 2.5% surcharge from Google for ads served in Canada.
The Digital Services Tax Act received royal assent on June 20 and came into force on June 28, requiring large businesses (foreign and domestic) to pay 3% on revenue earned from online users in Canada.
Google calls this a “jurisdiction-specific surcharge,” which is being added to cover part of the cost of complying with the legislation.
Why This Matters
When the October invoices arrive, those who advertise to Canadians with Google Ads and on YouTube will see an increase to their cost of running ads.
And it bears to reason other digital companies required to pay the DST will also begin passing along the cost to consumers.
Next Steps
This is a good time to assess your digital ads budget and prepare for additional fees ahead of the Google Ads increase. It may also be prudent to bolster your budget in anticipation of other companies following suit in the coming months.
Shauna Goodison
Director of Communications | shauna@eaglecom.ca