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Confused about when and how Google Ads charges Tax
Hi there. I have a confusion regarding taxation. Where I am from, I see Google ads charges 5% tax on adspend. Here is where I am getting confused. I am using manual payments. So if I were to make lets say a payment of $1,000, will I be charged $1,005 dollars on making my payment?
Or will I be only charged $1,000 and then tax will apply on actual adspend. For example I spent $1,000 in 1 day but it will only allow me to adspend $950 due to $50 in tax?
Is there any place in the billing section where I can read and understand my tax deductions better?
Sorry for the newbie question. Would really like help understanding this.
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1 Reply
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You should be more specific about what country you’re in if you want to get an accurate answer
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Tax is on ad spend, so for each line item of ad spend tax will get added on and deduct from your 1000 balance. If you opt to make a payment of 1000 to add credit, that amount wont automatically change to 1005.
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5% of 1000 is 50$
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