Country is charging tax on Facebook ads

hasher3

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Hi guys, I have been struggling with this issue for months.

My country implemented a service tax on Facebook ads since 2020.

Example: If I'm paying $10,000 in FB ads, $600 will go into the government's pocket. That eats up a lot of margins especially for small businesses like mine! Not to mention advertising on FB is the main source of traffic which means I will probably be spending more than 10k, perhaps more than 50k and the tax accumulated will be an enormous amount gone.

It seems that this does not happen in the US (Google "Maryland's online advertising tax"), I'm currently situated in South East Asia.

I am wondering if anyone out there is facing this issue too and how do you overcome this problem? Honestly paying taxes on top of ad spending is frankly demotivating small businesses and media agencies.

PS. Facebook auto deducts the tax out of my ad spending - so I'm not really sure how they determine my country location (bank account, credit card, Facebook account location(?), business manager account location(?), etc.)
 
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perrymason

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check with an accountant in your country, most countries usually consider it a business expense and can be deducted from your annual filling.
 

minniemouse

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That is the government of that country's directive, it not only charge on FB ads but all digital ads.
So we have no choice to pay.
 
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