Meta to Charge Advertisers 2–5% Location Fee to Cover Digital Taxes

Meta Platforms has announced that it will begin charging advertisers a location-based fee ranging from 2% to 5% to cover digital service taxes imposed by some countries. The new fee will take effect from July 1.

The charge will apply to image and video advertisements delivered on Meta platforms, including marketing campaigns and click-to-message ads on WhatsApp.

In a post on its website, Meta said the new fee is intended to offset digital service taxes and other government-imposed levies in certain countries.

“Until now, Meta has covered these additional costs. These changes are part of Meta’s ongoing effort to respond to the evolving regulatory landscape and align with industry standards,” the company said.

The location fee will be determined by where the advertisement’s audience is located, rather than where the advertiser’s business is based.

Meta said the fee will apply in six countries like 2% in the United Kingdom, 3% in France, Italy and Spain and 5% in Austria and Turkey.

Meta’s move follows similar steps taken by other major technology companies such as Alphabet’s Google and Amazon, which have also introduced additional charges to cover digital taxes in some countries.

Digital service taxes are imposed by several governments as a percentage of the revenue earned by large technology companies operating in their markets. However, the policy has drawn criticism from the United States government, which argues that such taxes disproportionately target American technology firms.