The search giant will start taking an additional 2.5 per cent “Canada DST fee” beginning in October, for spots bought through Google Ads or YouTube placements, according to an email sent to customers Thursday and obtained by The Logic. “Digital service taxes increase the cost of digital advertising,” said Google spokesperson Shay Purdy, adding the surcharge will cover “part of the costs associated” with compliance. (The Logic)

Talking point: The Liberal government enacted the digital services tax (DST) in June. It’s charging firms three per cent of their revenue made from online services involving Canadian users including advertising, e-commerce marketplaces and social media—slightly more than Google’s surcharge. While Ottawa put the levy into effect this year, it’s retroactive back to January 2022. Google has applied similar fees in other countries with DSTs such as France, Italy and the U.K. In Britain, Amazon also added a surcharge in response to the levy, while Facebook did not. Ottawa has said its DST is an interim measure until an OECD-led negotiation reaches a global deal on multinational taxation. Purdy said while Google pays due taxes where it operates, the firm would “encourage governments globally to focus on international tax reform rather than implementing unilateral levies.”