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Google now charging GST on AdWords

01 Nov 2016
by: John Stoneman

Google AdWords & GST

From 1 November 2016, Google started charging 10% GST on Google AdWords. Prior to this, because Australian Google AdWords customers were invoiced from Singapore (Google Asia Pacific Pte Ltd) it was exempt from GST.


1. How will it work in practice?

It is still early days but it seems that the amount you bid for your advert to be shown will be exclusive of GST. Google will add the GST after your advert has been shown. This means you will need to be aware that an extra 10% will be charged on top of what the bid price is.

2. What effect will it have on your business?

This depends on whether you are registered for GST or not.

If your business is registered for GST it will only have a cashflow impact on your business. This is because you will be able to claim the amount back when you lodge your BAS.

If your business is not registered for GST it will mean that you will be paying 10% more for Google AdWords.

On the good side, as most banks charged a foreign transaction fee as Google was billed from Singapore, you will no longer pay this fee.

3. Is there anything I should do?

You should speak to your bookkeeper or accountant to make sure they are aware of the changes. That way you will make sure, if you are registered for GST, that you claim a credit back.

Dynamic Websites specialise in small business web design. We are based in the Melbourne suburb of Hawthorn and provide services throughout Australia. We understand what it takes to get a small business online at an affordable price and with the minimum of fuss. Along with designing websites for small business, tradies and NDIS service providers we provide online marketing services. Our online marketing for small business extends to Google Ads, Google My BusinessMicrosoft Advertising, search engine optimisation (SEO), content writing and, blog writing.

Give John a call on  (03) 9028 7337  or email to find out more about how we can help your small business.