Google is slated to implement a 2.5% surcharge on ads served in Canada starting in October, a memo reveals, affecting digital publishers using the tech titan’s ad server. This move responds to Canada’s new digital services tax, which taxes tech firms with over $1.1 billion in global revenue at 3% on Canadian earnings above $20 million.
Critics have argued the “damaging” DST could end up burdening smaller businesses more than Big Tech and worry that companies like Apple, Amazon, and Netflix will pass increased costs on to consumers. Google’s policy shows that threat also applies to B2B.
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