Digital Services Tax Archives | Tech | Business | Economy https://techeconomy.ng/tag/digital-services-tax/ Tech | Business | Economy Thu, 12 Mar 2026 08:06:02 +0000 en-GB hourly 1 https://wordpress.org/?v=7.0 https://techeconomy.ng/wp-content/uploads/2025/06/cropped-256Px-32x32.png Digital Services Tax Archives | Tech | Business | Economy https://techeconomy.ng/tag/digital-services-tax/ 32 32 Meta to Shift Europe’s Digital Tax Burden to Advertisers with New Ad Fees https://techeconomy.ng/meta-location-fees-europe-ads-digital-services-tax/ https://techeconomy.ng/meta-location-fees-europe-ads-digital-services-tax/#respond Thu, 12 Mar 2026 08:06:02 +0000 https://techeconomy.ng/?p=177674 Meta will begin charging advertisers new location-based fees of up to 5% on ads delivered in parts of Europe from July 1, 2026

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Meta says advertisers will begin paying new location-based fees on some ads delivered in Europe starting July 1, 2026, as the company responds to digital services taxes imposed by several countries.

The charges will apply when adverts reach audiences in Austria, France, Italy, Spain, Türkiye and the United Kingdom. Rates will range from 2% to 5%, depending on the country where the ad is shown.

The company disclosed the change in a notice sent to advertisers and in an update on its website.

Meta explained that the additional charge is tied to government taxes and other levies linked to digital services in those markets. Until now, the company said it had absorbed those expenses.

“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.

How the new charges will work

The fee depends on where the audience is located and where the advert is delivered, not where the advertiser’s business operates.

If a campaign targets users in Italy, for example, a 3% location fee will apply to the value of the adverts delivered there. A $100 advertising campaign delivered in Italy would attract an additional $3 charge, bringing the total to $103 before any applicable VAT.

Meta said the location fees will be calculated after adverts are delivered. Campaign budgets will not automatically include the extra charge.

The company also confirmed that the charges will apply across different ad formats. Image adverts, video adverts and WhatsApp click-to-message campaigns are included. Marketing messages billed together with adverts will also attract the fee, although other WhatsApp paid messaging will not.

Charges will appear on invoices with clear descriptions for each jurisdiction.

Countries and rates

The new location fees will apply in six markets where digital services taxes are already in place.

Austria and Türkiye will attract the highest rate at 5%, France, Italy and Spain will carry a 3% fee, while the United Kingdom will have the lowest rate at 2%.

Meta noted that both the list of jurisdictions and the rates could change over time.

Several European governments introduced digital services taxes in recent years. The policy targets revenue generated by large digital platforms in their markets, even when those companies do not maintain a physical presence locally.

The taxes have drawn objections from the United States government, which argues they unfairly target American technology companies.

Other major platforms already pass those costs on to advertisers. Google and Amazon have implemented similar adjustments in Europe.

Meta had continued to absorb the charges until now and the company said the new fee structure shows changes in the regulatory environment and brings its approach closer to industry practice.

What it could mean for advertisers

Businesses outside Europe that target customers in those markets will also pay the new charges.

For companies in Nigeria or elsewhere in Africa, the effect will show up as slightly higher advertising costs when campaigns reach users in the affected countries.

Meta advised advertisers to review the ad accounts listed in its notice and inform finance, procurement and marketing teams so they can adjust budgets where necessary.

The company said advertisers with questions should contact Meta Pro support or their Meta sales representative for clarification.

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Trump Threatens Tariffs, Export Restrictions on Countries with Digital Taxes https://techeconomy.ng/trump-threatens-tariffs-digital-services-taxes/ https://techeconomy.ng/trump-threatens-tariffs-digital-services-taxes/#comments Tue, 26 Aug 2025 07:11:18 +0000 https://techeconomy.ng/?p=165807 Trump argues that DSTs are designed to harm American technology firms, while allowing Chinese competitors to avoid similar treatment

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U.S. President Donald Trump has issued a warning to countries that impose digital service taxes (DSTs), threatening to hit their exports with heavy tariffs and restrict access to advanced U.S. technology if they refuse to scrap the measures.

In a post on his social media page, Trump stated: “With this TRUTH, I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that unless these discriminatory actions are removed, I, as President of the United States, will impose substantial additional Tariffs on that Country’s Exports to the U.S.A., and institute Export restrictions on our Highly Protected Technology and Chips.”

Trump argues that DSTs are designed to harm American technology firms, while allowing Chinese competitors to avoid similar treatment. His position revives an old fault line between Washington and its allies. 

During his first term, he had also threatened countries such as Canada and France with tariffs for pursuing similar tax regimes. In February this year, he ordered U.S. trade officials to reopen investigations into countries levying DSTs against U.S. tech giants.

Over 20 nations, including France, Spain, Italy, India, Kenya, and the United Kingdom, have introduced DSTs ranging between 2% and 7.5% of gross revenue from digital advertising, marketplaces, and user data monetisation. These policies primarily affect firms such as Google, Meta, Apple, and Amazon, which dominate the global digital economy.

While proponents argue that DSTs ensure fair taxation of multinational platforms profiting from their markets, the U.S. government sees them as discriminatory. Officials believe they tilt the playing field against American companies while giving an advantage to rivals, particularly those from China.

Beyond DSTs, the United States has grown more wary of the European Union’s landmark digital regulations, the Digital Services Act (DSA) and the Digital Markets Act (DMA). The DSA, enforced in 2024, compels platforms to remove illegal content, boost transparency, and share data with regulators. 

The DMA aims to curb anti-competitive behaviour by major “gatekeepers” such as Google and Apple, forcing them to open up their platforms and reduce self-preferencing.

Washington interprets these moves as non-tariff trade barriers. Reports state that Trump’s team has even considered sanctions on EU officials responsible for enforcing the laws, a step that could further strain the $1.7 trillion transatlantic trade relationship.

Trump’s latest warning goes beyond tariffs as he also threatened to restrict exports of advanced semiconductors and artificial intelligence chips, a measure that could disrupt supply chains worldwide. Companies like Nvidia, which play a central role in AI development, could be caught in the crossfire.

The U.S. and EU conduct more than $4.2 billion in trade daily, and a recent agreement capped U.S. tariffs on most European goods at 15%. Introducing new tariffs or export controls would escalate tensions and risk retaliation from allies.

Efforts to resolve the tax dispute at the multilateral level have also faltered. The OECD has been pushing for a global framework to replace DSTs with a uniform system for taxing multinational profits. However, the U.S. remains resistant, fearing it would lose its own taxation rights under the proposed arrangement.

With both sides unwilling to compromise, the digital tax fight appears set to intensify. Trump’s latest threat raises the prospect of a trade confrontation both with rivals, and with long-standing allies who see DSTs as a matter of fairness in the digital economy.

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