Platforms Pass Digital Taxes to Advertisers

Meta will charge advertisers a 2–5% 'location fee' based on the audience's country to cover digital services taxes and other levies starting July 1. The fee applies to image/video ads and certain messaging campaigns on Meta's platforms and is determined by where the ad audience is located, not where the advertiser is headquartered. — This demonstrates how global platforms can blunt the intended incidence of national digital taxes by shifting costs onto advertisers (and ultimately consumers), complicating the politics and economics of taxing the digital economy.