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Google has raised the cost of advertising on the search network, hoping to pay the new tax on digital services. The company announced that from November 1, after the introduction of the new fees, ad prices in the UK will increase by 2% and ad prices in Austria and Turkey will increase by 5%. .
The governments of several European countries have sued US tech giants, including Google, to test the dominance of the internet and force these companies to generate huge revenues in order to generate certain revenues.
Google Ads:
"Given the significant increase in the complexity and cost of compliance in Turkey, Austria and the United Kingdom, regulatory operating costs have increased with taxation of new digital services in these countries," Google said in a statement.
UK customers may have to spend millions of pounds on additional spending on Google ads and YouTube. However, due to the potential benefits of this offer, these additional costs may be worth it.
The United Kingdom imposed a tax on digital services for search engines and social media platforms in July 2019. Some companies, including Amazon, Facebook and Twitter, are also affected by this tax in addition to Google, where the tax was announced last year. £ 1.6 billion in sales. .
The tax went into effect on April 1. Companies with global sales of over £ 500 million and UK revenues of over £ 25 million, are charged a 2% commission. The government hopes sales will come to around £ 500 and £ 1m per year.
A Google spokesperson told The Guardian: “A tax on digital services increases the cost of digital advertising. Generally this type of cost increase is borne by customers and it is like other companies affected by this tax. We will collect it in November. The fee starts. We will increase the costs and we will continue to pay Taxes Due. In the UK, we will encourage governments around the world to focus on international tax reforms rather than introducing new taxes unilaterally.
In the relevant circumstances, Amazon announced that it will increase its sales fee in the UK by 2% to cover taxes.