Understanding the
Google Canada Digital Services Tax (DST)

The Google Canada Digital Services Tax (DST) is a fee that Google is applying to its advertising services in Canada as of October 1, 2024.

Google Canada DST fee is being charged at a rate of 2.5% for ads served in Canada.

The fee helps Google pay for Canada's new Digital Services Tax, which taxes the money big digital companies make from Canadian users. This new tax aims to make sure these companies pay their fair share, similar to traditional businesses. In introducing this fee, Google is passing the cost of the new tax to advertisers who use its services in Canada.

This change affects advertisers, agencies, and digital marketers in Canada. Many other countries are also starting to tax large digital companies to ensure fair taxation.

To help manage the impact of this new fee, Rocket Marketing will continue to:

Optimize Your Ads: We will make sure your ads are efficient by improving their performance, removing poor performers, and targeting the right audiences to get better results and spend less.

Use Different Marketing Channels: We will explore other advertising options like social media ads, Bing Ads, and Spotify to balance the increased costs and keep your marketing effective.

Boost Organic Marketing: Investing in strategies like search engine optimization (SEO) can give long-term benefits and reduce the need for paid ads.

Track and Improve ROI: We will regularly check and adjust your advertising strategies to make the best use of your budget.

If you have any questions about the new tax or your advertising strategies, please contact us.