Google charges GST for clicks on Adwords in AustraliaAs of November 1, 2016, Google charges GST on AdWords. GST had not been applicable before this time. Other international social media giants are sure to follow. As of November 1, 2016, Google Australia Pty Ltd is required by law to charge 10% GST (Goods and Service Tax) on its services. This includes a 10% charge in addition to all Google AdWords "click budgets" (otherwise known as CPC). Until now, because Google is headquartered offshore, there has not been GST applicable (like any other international purchase). Other social media giants, like Facebook and Instagram, are likely following suit. So what does this mean for you? Well if you are a business registered for GST, very little other than cashflow, as you can claim the GST back at BAS time. However, if you are a small business not registered for GST, you are going to have to pay it, and you wont be able to claim it back. The main thing to knowis whatever your current Google Ads budgets are at present they stay the same. The GST will be added to your account AFTER the spend. So your budgets stay the same. Important! If you run your credit card pretty close to the limit, just make sure you have enough in there to cover the extra! Here's a copy of Google Australia Pty Ltd's official announcement regarding Google AdWords GST:
Have any more questions regarding GST on Google Ads? Looking for a professional to manage or evaluate your existing Google Ads campaign? Contact our AdWords Sunshine Coast certified Digital Marketing team today for more information. |