The tech giant Google will increase the price of advertising in the UK in light of the Digital Services Tax, Tanizzle can reveal exclusively.
The Digital Services Tax Doesn't Help Businesses
From November 2020, the tech behemoth Google will increase the price of advertising on it's platforms, as a result of Digital Services Tax (DST) laws. In an email sent to advertisers today, for which includes ourselves (image below), Google highlighted it's intentions for the two per cent "UK DST Fee" - subsequently affecting smaller companies.
The changes come after tech companies face a "significant increase in the complexity and cost of complying with regulations" in certain countries including, the United Kingdom, Turkey, and Austria. The detrimental "DST Fees" and "Regulatory Operating Costs" will burden businesses and consumers; similarly to Amazon's changes effective today.
What Do We Know About Google's D.S.T Changes
The DST changes, which will affect all adverts served throughout YouTube and Google Ads, will be charged based on the number of ad impressions or clicks that are served in a specific country. By advertising in multiple countries, advertisers will bare the costs that correspond to the countries impacted "only".
For example, if an advertiser campaigns in Germany, Austria, Poland, Peru, and UK, their payment accounts will incur the additional fees where applicable; notably Austria and the UK in this example's instance; as long as the number of ads seen or clicked meet a certain criterion. For more information on how Google DST fees are calculated, check this Google answer.
- Ads served in Turkey: a 5% Regulatory Operating Cost added to your invoice or statement
- Ads served in Austria: a 5% Austria DST Fee added to your invoice or statement
- Ads served in the United Kingdom: a 2% UK DST Fee added to your invoice or statement
Although the UK's digital tax is supposedly temporary, it's implementation will burden the consumer more than advertisers, especially where Amazon's considered. The online shopping giant recently announced the increase of seller and referral fees, fulfilment services including storage and logistics fees; effective from the September 1st.
Similarly to Amazon, Google's new fees will be subject to any taxes, such as sales tax, VAT (Value Added Tax), GST (Goods and Services Tax), or QST (Québec Sales Tax) that apply in specific countries.
If you were ever told that consumers will "not" bare the brunt of price increases, think again; it's inevitable.
As much as the UK government thinks that DST fees will somehow "level the playing field", it really won't, but cause headaches for consumers already overwhelmed with expenses. The implementations are not only problematic for businesses smaller than the "intended targets", big tech, consumers will have to dig deeper into their pockets to cover additional costs.
Whilst governments and mainstream media continue to slander technology companies for being "the great coming of evil", in light of their winning streaks, they remain complicit to the consequences of tech regulations. These regulations aren't helpful in progressive societies as citizens end up paying more.
Why is Tanizzle So Fussed About The D.S.T Fees?
Tanizzle is a publisher and advertiser that uses both Google for advertising and Amazon as an affiliate. Tanizzle is also pro-technology and doesn't support "any" government actions that include regulations of innovations they don't understand. Please save your internet ladies and gentleman, and learn about the technology regulations agenda (#DigitalRegulationsAgenda), before it's too late.
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