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Gloucestershire Business News

Google to add tax to advertisers' costs

Google is to pass on the cost of a UK digital services tax to its advertisers.

The online giant has written to customers to tell them two per cent will be added to ads in the UK when the new tax is introduced from November 1.

Amazon has already announced it would add the charge to market sellers while eBay has said it would absorb the extra cost rather than pass it on to buyers and sellers.

Announcements from Facebook and Microsoft are expected in the coming weeks.

A statement from Google said: "Digital service taxes increase the cost of digital advertising.

"Typically, these kinds of cost increases are borne by customers and, like other companies affected by this tax, we will be adding a fee to our invoices, from November.

"We will continue to pay all the taxes due in the UK, and to encourage governments globally to focus on international tax reform rather than implementing new, unilateral levies."

The digital tax, announced by former Chancellor Philip Hammond, is expected to bring in revenues of more than £500million.

It is intended to be a temporary measure until a global levy is agreed.

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