Effective on the 1st of August 2018, Facebook has added GST to its ad services for Australians. If you are a business, have an ABN and are registered for GST, you will now be able to claim GST on these costs if they are for your business. This is due to a recent change in GST law on imported services and digital products.
Facebook will now be charging GST on their advertising costs, so businesses may find that their Facebook advertising costs have increased by 10%.
Known as the “Netflix tax”, this has been in place for digital content (products and services) since the 1st of July 2017, however, Facebook has only recently started charging GST.
If you feel that this may affect your business or you would like more information or advice, please do not hesitate to contact the team at Crest Accounting.