By Canadian Press

Google to charge new fee on ads in response to Canada’s digital services tax

Aug 1, 2024 | 5:11 PM

OTTAWA — Google says it will pass on the cost of the Liberal government’s digital services tax to advertisers.

The company says it will implement a 2.5 per cent surcharge for ads displayed in Canada, starting in October.

A Google spokesperson says the fee is meant to cover part of the cost of complying with the tax.

The tax, approved in Parliament in June, will add a three per cent levy on foreign tech giants that generate revenue from Canadian users.

It’s drawn opposition from trade associations and business groups in the United States, where many of the tech giants are based.

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The Office of the United States Trade Representative said earlier this month it is open to using all available tools to halt the tax.

This report by The Canadian Press was first published Aug. 1, 2024.

The Canadian Press