On 1 October 2024, Google will start charging a new surcharge for ads served in Canada, called the 'Canada DST Fee'. This surcharge is 2.5% and is being introduced to cover costs related to complying with digital services tax legislation in Canada.
Ads Purchased Through Google Ads
- The surcharge will appear as a separate line item on invoices or statements and in the 'Transactions' section of your Google Ads account.
- Any applicable taxes (sales tax, VAT, GST, QST) may also apply to the new surcharge.
- For monthly invoicing or automatic payments, the surcharge will be added to your account budget. For instance, a $100 budget plus a $2.50 Canada DST fee results in a $102.50 bill (plus any applicable taxes).
- For manual payments, the surcharge may be charged after your payment is fully spent, potentially leaving an open balance that will be deducted from your next prepayment. For example, a new $100 payment minus a $2.50 Canada DST fee results in a $97.50 credit towards ads.
YouTube Placements Purchased on a Reservation Basis
- The surcharge will appear as a separate line item on invoices and will be added to the media plan budget. For example, a $100 budget plus a $2.50 Canada DST fee results in a $102.50 bill (plus any applicable taxes).
