As your trusted digital marketing partner, we’re committed to keeping you informed about changes that impact your advertising strategy. Effective July 1, 2025, Google will no longer apply the 2.5% “Canada DST Fee” to ads served in Canada. This follows the Canadian government’s announced intention to repeal the Digital Services Tax (DST).
This update will directly affect how your Google Ads are invoiced and reported. Here’s what you need to know.
Learn more about Google’s jurisdiction-specific surcharges here.
What’s Changing about DSTs?
No More DST Fee for Canadian Ads
As of July 1, 2025, ads served in Canada will no longer be subject to the 2.5% Canada DST Fee. This fee had previously been applied to help cover compliance costs related to Canada’s DST legislation.
Impact on Invoices
The DST Fee will no longer appear on your Google Ads invoices or statements for ads served in Canada starting July 1.
Display & Video 360 Reporting Note
Until July 31, 2025, Display & Video 360 users may still see DST fees appear in reporting as they are phased out. However, any fees incurred in July will be removed before invoicing and will not be charged.
Refunds Coming
Google has stated that once the DST legislation is officially repealed, previously collected Canada DST fees will be refunded. We’ll update you when more information becomes available.
Taxes Still Apply
Other applicable taxes, such as GST, QST, VAT, or sales tax, will continue to apply based on your jurisdiction, regardless of the DST fee removal.
What Advertisers Should Do About the DST Update
Most advertisers won’t need to take any action, but it’s a good time to review your account setup:
Review Reporting Tools
If you use Display & Video 360 or rely on custom billing reports, be aware that you may see DST-related line items during the transition period. These should disappear by the end of July and will not be billed.
Adjust Budgets (If Needed)
Without the 2.5% surcharge, your budget may now go slightly further, which is good news if you’re focused on ROI.
Monitor Refund Updates
If your business has been paying the DST Fee since October 1, 2024, watch for updates from Google regarding refund timelines and procedures.
Talk to Your Foundery Account Manager
Have questions about reporting changes or how this update affects your current campaigns? We’re here to help you adjust and optimize.
FAQ
The Canadian government has announced plans to repeal the Digital Services Tax, which prompted Google to stop collecting the associated fee.
Yes. Google will process refunds after the legislation is officially repealed.
Refunds will be processed by Google once the DST legislation is officially repealed. The exact timeline has not yet been confirmed, but Google has stated that eligible advertisers will receive refunds automatically to the payment method on file. Keep an eye on your billing center and official communications from Google for updates.
No changes are required, but if you previously adjusted budgets or payment strategies to account for the DST Fee, you may want to revisit them.
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