Understanding Web Taxes on Your Facebook, Google Ads, and LinkedIn Advertising Bill
Posted: Wed Dec 04, 2024 5:51 am
he goods and services created, delivered and consumed through the digital ecosystem are now an integral part of Quebec's economy... and like all economic contributors, these companies should also contribute to its taxation system, right?
Well, that is indeed the announcement made by the Quebec government in its 2018-2019 Budget Speech , namely that these suppliers will also have to collect the Quebec sales tax (QST) . But what does this mean exactly, for example, for our clients who have a portion of their advertising budget on the Web?
A quick recap of this new web tax
If you operate a business with commercial activities in Quebec, you algeria telemarketing data already know that Revenu Québec requires that you apply certain taxes on the sale price of the products and services that you distribute.
Before our government's announcement, which requires operators of certain digital platforms to register for the Quebec sales tax (QST) , an increasingly significant gap was opening up between economic reality and the base of tax revenues.
In fact, this type of supplier not resident in the province could benefit from its economy without having to contribute to its vitality, creating significant losses as well as inequalities compared to their local competitors obliged to collect the tax.
It is with this tax fairness in mind that the Quebec government came up with these new rules when it tabled its budget on March 27, 2018: the foreign entities concerned must register and begin collecting and remitting the QST as of September 1, 2019.
Not happy with your digital ads?
We know what we're talking about.
Prepare your advertising budgets to take QST into account
The QST tax applies to all advertisers who have defined Quebec as the country of sale in their professional address and/or who have added their QST number to their advertising account.
Since the QST is added to the fees, you will not reach your billing threshold any faster, but you may have to pay fees higher than your billing threshold amount.
To illustrate this, imagine that you set your spending limit in the advertising platform at $100. This amount, assuming that it has been fully spent, would represent the subtotal of your invoice, the total amount will add this value and that of the QST (9.975%) . In this case, the final amount of your invoice will be $109.98.
Thus, the arrival of the QST on these channels requires the forecast of a net budget (allowing the planning of campaigns on these platforms) and a gross budget (taking into account the QST). As an agency, we ask our clients to provide us with the net budget.
Update your ad account information
To ensure that our clients can recover maximum value on their advertising investments, we add their QST registration number to each of their platforms.
Although mentioned as optional in the Facebook and Google Ads documentation, we strongly recommend doing so since it allows the client company to claim tax deductions . To prepare our clients' advertising accounts, we follow the following methodology for each of the providers mentioned:
How to add your QST number in Facebook ads ?
Log in to Facebook Account Business Manager
Click on the menu at the top left, then select “Billing”
Click on “Payment Settings”
Under “Advertising Accounts”, enter the QST registration number in the “Tax Identification Number” field.
Click “Save Changes”
As other providers have not yet released all the information regarding this new legislation, this article will be updated as it comes into force.
Well, that is indeed the announcement made by the Quebec government in its 2018-2019 Budget Speech , namely that these suppliers will also have to collect the Quebec sales tax (QST) . But what does this mean exactly, for example, for our clients who have a portion of their advertising budget on the Web?
A quick recap of this new web tax
If you operate a business with commercial activities in Quebec, you algeria telemarketing data already know that Revenu Québec requires that you apply certain taxes on the sale price of the products and services that you distribute.
Before our government's announcement, which requires operators of certain digital platforms to register for the Quebec sales tax (QST) , an increasingly significant gap was opening up between economic reality and the base of tax revenues.
In fact, this type of supplier not resident in the province could benefit from its economy without having to contribute to its vitality, creating significant losses as well as inequalities compared to their local competitors obliged to collect the tax.
It is with this tax fairness in mind that the Quebec government came up with these new rules when it tabled its budget on March 27, 2018: the foreign entities concerned must register and begin collecting and remitting the QST as of September 1, 2019.
Not happy with your digital ads?
We know what we're talking about.
Prepare your advertising budgets to take QST into account
The QST tax applies to all advertisers who have defined Quebec as the country of sale in their professional address and/or who have added their QST number to their advertising account.
Since the QST is added to the fees, you will not reach your billing threshold any faster, but you may have to pay fees higher than your billing threshold amount.
To illustrate this, imagine that you set your spending limit in the advertising platform at $100. This amount, assuming that it has been fully spent, would represent the subtotal of your invoice, the total amount will add this value and that of the QST (9.975%) . In this case, the final amount of your invoice will be $109.98.
Thus, the arrival of the QST on these channels requires the forecast of a net budget (allowing the planning of campaigns on these platforms) and a gross budget (taking into account the QST). As an agency, we ask our clients to provide us with the net budget.
Update your ad account information
To ensure that our clients can recover maximum value on their advertising investments, we add their QST registration number to each of their platforms.
Although mentioned as optional in the Facebook and Google Ads documentation, we strongly recommend doing so since it allows the client company to claim tax deductions . To prepare our clients' advertising accounts, we follow the following methodology for each of the providers mentioned:
How to add your QST number in Facebook ads ?
Log in to Facebook Account Business Manager
Click on the menu at the top left, then select “Billing”
Click on “Payment Settings”
Under “Advertising Accounts”, enter the QST registration number in the “Tax Identification Number” field.
Click “Save Changes”
As other providers have not yet released all the information regarding this new legislation, this article will be updated as it comes into force.