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Meta to charge UK and European advertisers location fees to pass on digital taxes

Meta will add location-based fees of 2%–5% in United Kingdom, France, Italy, Spain, Austria and Turkey with the move said to be response to national digital service taxes.

Jamie Ashcroft profile image
by Jamie Ashcroft
Meta to charge UK and European advertisers location fees to pass on digital taxes
Photo by Shutter Speed / Unsplash

Meta will start charging advertisers a location fee of between 2% and 5% to offset digital service taxes and other government levies, and will apply the charge from 1 July to image and video ads delivered on its platforms, including WhatsApp click-to-message campaigns.

The move follows similar steps by Alphabet's Google and Amazon as big tech shifts tax burdens.

Announcing the move in a blog post, Meta said the charges are based on where the ad audience is located rather than where the advertiser is registered, reversing its prior practice of absorbing the added costs.

Meta listed six countries where the fees will apply, revealing a 2% charge in the United Kingdom; 3% in France, Italy and Spain; and 5% in Austria and Turkey.

The company said the fees "will also cover other government-imposed levies" and will apply to marketing messages together with ads.

"Until now, Meta has covered these additional costs. These changes are part of Meta's ongoing effort to respond to the evolving regulatory landscape and align with industry standards," the Facebook, Instagram and Whatsapp parent said.

Meta says the changes align its billing with industry practice and the evolving tax environment.

The recap

Meta will charge advertisers location fees for digital taxes.

Fees range from 2% in the UK to 5%.

Charges apply from July 1 and follow industry peers.

Jamie Ashcroft profile image
by Jamie Ashcroft