According to a new Google update on jurisdiction-specific surcharges guidance, Google Ads will implement an additional fee for ads displayed in Canada. This surcharge aims to help offset the costs associated with complying with the country’s new digital services tax.
Effective from 1 October, 2024, a 2.5% Canada Digital Services Tax (DST) Fee will be included in the new invoice or statement of users for advertisements served in Canada. This will cover some of the costs of complying with Canadian Digital Services Tax legislation.
Canada enacted the Digital Services Tax Act (DSTA) on 20 June 2024, which was enacted by Order in Council on 28 June 2024. Under the Act, a 3% Digital Services Tax (DST) will apply to companies with a total global revenue of CAD 1.1 billion or more or those generating CAD 20 million in revenues.
The digital services tax took effect starting 1 January, 2024, and will be applied retroactively to all relevant revenues generated since 1 January, 2022.
