Use this lesson to:
- Recognize how taxes may be collected on your Facebook Ads
- Add or update your business’ tax identification number to your ad account
If you purchase Facebook ads, you may need to pay tax on your ad purchases. In this course, we’ll go over when tax may be applicable on your ad purchases and how to add a tax registration number to your ad account.
Since tax laws are subject to change and differ by country or region, these are general guidelines to follow. Facebook can’t give tax advice, so it’s important to speak with your tax advisors or tax authority if you have questions about your tax obligations.
Tax implications on digital ads
Tax law varies from country to country and changes rapidly. In general, digital services, which includes digital ads, are subject to transactional taxes such as Value Added Tax (VAT), Goods and Services Tax (GST) and Sales tax.
Various factors can drive different tax treatment of your ads purchases, including:
- Your tax registration status
- Your legal address
- You advertise for a business purpose
Most advertisers use Facebook Ads for a business purpose—if you have or will use Facebook Ads to promote goods or services for economic gain, then this is considered as a business purpose. This includes affiliates, sole traders, self-employed merchants, partnerships and other situations.
If you use Facebook Ads and your business’ billing address is within a region where tax is applicable, you will either:
- Be charged the applicable tax rate for your country or region, or
- Be expected to self-assess your tax charges at the applicable rates of the country or region you’re doing business in.
If you are subjected to self-assessment or reverse charge mechanism, you’ll need to contact your country’s tax authority for additional information about the self-assessment process, since Facebook can’t provide tax advice.
See if taxes apply to you and learn more about specific tax details in our Help Center article on Accepted Currencies & Taxes.
Add or update your tax registration number to your ad account(s) to avoid incorrect tax charges
To help ensure you’re charged the correct amount of tax on your ads, you should add your business’ tax registration to your ad account. If you’re charged tax incorrectly (i.e. local tax should not have been charged on your ad), you’ll need to request a tax refund, which is typically a lengthy process. Additionally, in certain countries or regions, you’re required to obtain refunds from tax authorities, not from Facebook, since Facebook only collects the tax for tax authorities.
To add your VAT, GST or Tax Identification Number to your ad account(s):
- In Ads Manager, go to your Ad Account Settings. If you have multiple ad accounts, select the one you want to work on first. You’ll need to add a tax registration number to each of your ad accounts.
- In the Ad Account Setup window, click the Business Country dropdown menu and then select the billing country of your business.
- Enter your VAT/GST/Tax ID number in the Tax Registration Number field. For some countries, additional information may be required.
- Click Save Changes.
Let’s do a quick review of what we’ve covered in the course.