Don’t forget to expect 15% of your top up budget amount is going to be tax deductible since Google now ads vat since April 2019.

If you are topping up R100 per day and expect a spend of R3000 per month, don’t forget to add 15% for tax on top of this so top up an amount of R3450.

Find out more about the tax implications for your country on Googles Support Forum Here.

Since April 2019, VAT is now being deducted off your account for any google ads balance payments so 15% of the budget is being deducted for VAT. This means the budget is running out sooner than expected. Please refer to the article link below for more information.

https://support.google.com/google-ads/answer/2375370?hl=en

 

Taxes in your country

South Africa

Taxes or Value Added Tax (VAT) might be applicable to your business, depending on its location. Read on to see what applies in your country. If you’d like to see information for another country, click the drop-down menu above.

Value Added Tax (VAT) and Google Ads status

All Google Ads accounts in South Africa are subject to VAT at the South African rate, which can change at the South African government’s discretion. Here’s a look at what you can expect if you’re in South Africa:

  • You’ll always be subject to VAT charges at the current South African rate, as required by South African legislation as of April 1, 2019.
  • If you’re on automatic payments, we’ll add VAT costs to your Google Ads costs once at the end of every month, to be paid the next time you are charged.
  • If you’re on manual payments, we’ll subtract VAT costs from your balance before it is depleted, once at the end of every month.

You should now be able to claim vat back  following the appropriate methods. We are able to send you a monthly invoice which we can download from the Google Ads system.