19 MARCH 2026
Meta introduces the Digital Services Tax (DST): let’s clear things up
Meta has decided to follow in Alphabet’s footsteps, introducing — as of 1 July 2026 — location fees for ads served in specific regions, in order to cover the Digital Service Taxes (DST) and other geography-based charges imposed on Meta in those jurisdictions.
Location fees apply to ads regardless of format (image or video) and include WhatsApp click-to-message campaigns and marketing messages, which are currently billed alongside ads. The fees do not apply to any other type of WhatsApp paid messaging.
How Digital Services Taxes work
Geography-based rates are determined by where the target audience is located and where the ads are served (impressions), not by where the business is based.
The same fees are currently also applied to Google Ads, and can be identified on invoices under the label “Digital Service Taxes (DST)”. They will also be identifiable on Meta invoices and will not appear within Ads Manager reporting metrics.
Where they will be applied
The rates will be applied across several countries, each with its own fee:
- Austria — fee: 5%
- France — fee: 3%
- Italy — fee: 3%
- Spain — fee: 3%
- Türkiye — fee: 5%
- United Kingdom — fee: 2%
In the case of ad campaigns delivering simultaneously across multiple countries subject to the tax, fees will be calculated based on the ad impressions served in each country and will appear as separate line items on the invoice.
Note: the list and fee percentages may change depending on how the legislative landscape evolves.
How this tax relates to VAT
VAT is calculated on the total campaign amount (ad delivery cost + location fee). This means that VAT applies to the overall total, not just the ad spend. For those using monthly invoicing, the fees reduce the remaining available credit line, as they are calculated after delivery.
How does it work with monthly invoicing?
The fee is separate from the campaign budget and is charged in addition to it, after ad delivery.
A practical example: If you set a budget of €1,000 for a campaign delivering impressions in Italy, you will be charged a total of €1,030 — not €970 in ads + €30 in fees.
What to do
The fees are applied by the platform upon delivery of the listed ads, at the specified percentage. Just as with Google Ads, for example, the recommendation is to account for them and factor them in proactively when drawing up media plans, so as to be adequately prepared for this additional cost.