Read Meta’s full announcement here.
Meta has announced location fees on ads delivered on Meta platforms in certain countries that charge digital services taxes (DST) and similar location-specific fees. The company said that it had previously absorbed these costs and credited the change to an “evolving regulatory landscape” and industry standards. For context, DSTs are taxes that governments impose on the revenue large digital platforms earn from users in their country, even if the company has no physical presence there.
The additional fees will apply when ads target users in jurisdictions that tax digital platform revenues. Consequently, advertisers focusing on these markets will see extra charges on their invoices. Currently, the fees apply in the following markets, though Meta said additional countries may be added over time:
- Austria: 5%
- France: 3%
- Italy: 3%
- Spain: 3%
- Türkiye: 5%
- United Kingdom: 2%
How will location fees work?
Meta applies location fees when ads reach users in jurisdictions with government-imposed digital taxes. Importantly, the fee depends on where ad impressions occur, not where the advertiser is based. Moreover, campaign budgets do not include these charges. Instead, Meta adds the fee after ads are delivered, which means the final bill may exceed the ad budget. For instance, $100 in ads delivered in Italy incurs a 3% fee, raising the total to $103.
Other Companies With DST Charges
Other major companies like Microsoft, TikTok, Snapchat, and X do not pass DST costs on to advertisers but do charge for VAT and GST.
India’s Abolished “Google Tax”
India previously imposed a digital services tax known as the Equalisation Levy, often called the “Google tax”. The country introduced it in 2016 as a 6% tax on online advertising services provided by foreign companies and later expanded it in 2020 with a 2% levy on foreign e-commerce operators serving Indian users.
However, India abolished the 2% levy in August 2024 and removed the remaining regime by April 2025, partly to align with the Organisation for Economic Co-operation and Development’s (OECD) global tax framework and ease trade tensions with the US.
OECD Global Tax Framework
The OECD proposed a global digital tax framework in 2021 to replace unilateral digital services taxes with two pillars. Pillar One aims to replace country-specific DSTs with a global framework that allows countries to tax a share of profits earned by the largest multinational companies, especially US digital companies, in markets where their users or customers are located, even if those companies have no physical presence there. However, countries have yet to finalise the framework. Meanwhile, Pillar Two sets a 15% global minimum corporate tax, and several countries have already implemented it.
Questions Sent To Meta
MediaNama has sent questions to Meta regarding their policy update. The copy will be updated as and…
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