SVP, Partnerships + GTM - One of the original founding members of the S&O team, Tony oversees strategic partner development and go-to-market planning for our Channel, Technology, and Agency partnerships.
As part of the new digital services tax legislation in France & Spain, starting May 1st 2021 Google Ads will begin billing a Regulatory Operating Cost (ROC) for ads purchased by advertisers in these countries.
Back in November 2020, Google began enforcing a new Digital Services Tax in the UK, Austria, and Turkey.
Today, emails rolled in from Google announcing that a similar surcharge will now be billed for ads purchased in France & Spain.
Here's the full rundown per Google:
As of 1 May 2021, we will begin adding a surcharge to your next invoice or statement for ads served in specific countries:
- Ads served in France: a 2% Regulatory Operating Cost added to your invoice or statement.
- Ads served in Spain: a 2% Regulatory Operating Cost added to your invoice or statement.
The Regulatory Operating Costs (ROC) are being added to cover part of the costs associated with complying with digital services tax legislation in France and Spain.
Ads purchased through Google Ads:
- These surcharges will be shown on your invoice or statement as a separate line item per country. They will also be displayed in the "Transactions" section of your Google Ads account. You'll be charged for advertisements served in the countries mentioned above.
- Any taxes, such as sales tax, VAT, GST, or QST, that apply in your country may also apply to the new surcharges.
- If you pay through monthly invoicing or automatic payments, these surcharges will be added in addition to your account budget. For example, if you have a budget of €100 and accrue €2 in France ROC for ads served in France, you'll be billed €102 (plus any taxes, such as sales tax, VAT, GST, or QST, that apply in your country).
- If you pay through manual payments, these surcharges may be charged after your payment has been fully spent. You may be left with an open balance that will be automatically deducted from your next prepayment. For example, if you accumulate €2 of Regulatory Operating Costs for ads served in France, and you make a new payment for €100, you would have €98 credit towards displaying ads (€100 - €2), and your available balance would show €98.
A complete overview of the new ROC for France & Spain is now included with the previously announced countries on Google's support page.