Meta Platforms (META) plans to charge advertisers an additional “location fee” starting July 1 to cover digital taxes in certain European countries, Bloomberg reported Tuesday.
In an email that was viewed by Bloomberg, Meta informed advertisers of the new fees, which will apply to digital ads delivered in particular countries, even if the advertiser isn’t based there.
Businesses buying ads on the company’s platforms will be charged an additional amount, corresponding to the digital tax rate in the country where they are showing the ad, the report said. Both image-based and video ads will be affected. Meta claims it absorbed the location fees all this while.
The policy is set to apply to Austria, France, Italy, Spain, Turkey, and the UK. France, Italy, and Spain’s digital service tax rate is 3%, while Austria and Turkey charge 5% and the UK 2%, the report said.
“If you deliver $100 in ads to Italy, where there is a 3% location fee, you will be charged $100 (ad delivery), plus $3 (location fee), for $103 total,” the company reportedly said in the email. “Note that any applicable VAT will be calculated on top of the total amount.”