New Taxes and Increased FX Markup Shake Up Digital Advertising Budgets for Google, Facebook, TikTok, and Snapchat Ads in Egypt!
Hold onto your marketing budget! Egypt has just introduced new taxes that are set to impact digital advertising giants like Google, Facebook, TikTok, and Snapchat. But that's not all - there's an additional surprise in store. Get ready for an increased FX Markup.
The VAT Implementation
The implementation of a 14% value-added tax (VAT) on electronic services provided by non-resident service providers is set to send shockwaves through the digital advertising landscape in Egypt. Starting from July 1st, these platforms will now be subjected to the VAT as per the recent amendments to the executive regulations of the value-added tax law.
In addition to the VAT, there has been an increase in FX Markup from 10% to 15% on every transaction.
That translates to a significant 29% surge in your marketing budget. This sudden increase can catch businesses off guard, particularly those heavily reliant on digital advertising platforms for their marketing campaigns, without even accounting for the rates charged by marketing agencies.
Immediate Impact on Google, Facebook, and TikTok
Google has announced in an email sent to its customers, in which Google clarifies: “In compliance with local laws in Egypt, starting from July 1, 2023, we will start charging 14% value-added tax on electronic services unless we have your tax registry number.”
Facebook has also released a statement regarding the new tax regulations. please visit Facebook Announcement Page.
TikTok and Snapchat are also announced to comply with the new tax regulations.
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please visit TikTok Announcement Page.
Popular international streaming platforms such as Netflix, Disney Plus, OSN+, and Amazon Prime, and music streaming services such as Spotify, Apple Plus, and Anghami could soon join mentioned platforms in adopting the new VAT.
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Sales Associate at American Airlines
1 年Thanks for sharing