Due to recent changes to tax laws in Australia, Facebook ads purchases will be subject to a goods and services tax (GST) of 10% beginning August 1, 2018. This change will affect all ad accounts that have their business country set to Australia. However, if your business is registered for GST, you can add your Australian Business Number (ABN) to your Facebook ad account so that you won’t be charged GST on ads purchases.
This is important: after August 1, 2018, you’ll stop being charged GST only after you add your ABN to your ad account (even if your business was registered for GST before then).
Moreover, if you have multiple ad accounts you run ads with, you’ll have to add your ABN to each one that you want to associate with it. Yes, if you have more than one accounts associated with the same ABN, make sure each account gets updated with the same ABN.
For all other advertisers (those who are not registered for GST), GST will be added whenever you’re charged for your ads.
For example, let’s say you were recently charged $300 because you reached your $300 billing threshold. The subtotal for the charge will be for $300 in ad costs, and then a 10% GST will be added on top of that, so you’ll pay $30 in total for that charge ($300 + $30 = $330). Note: because GST is added on top of charges, you won’t reach your billing threshold faster, but you may be charged more than your billing threshold amount.
Keep in mind that any charges for ads that occur on and after August 1, 2018, will be subject to GST. This includes charges for ad costs you may have accrued before then. For example, if you have outstanding ad costs from ads you ran in July, but your monthly bill date isn’t until August 2, 2018, GST will be included when you’re charged for those costs (unless you’ve added an ABN to your account).
You can check how much you paid in GST for a specific charge by referencing your ads receipts, which you can view and download in the Billing section of your Ads Manager. On your ads receipts, the amount you paid in GST will be listed next to your payment totals.
To add your ABN to Facebook advertising, please visit your Business Manager, go to All Tools and the Settings. Make sure it says Australia and then scroll down to input your ABN.
If you had enough of running your own advertising show and want to focus on your clients and the impact you make, book a free social media strategy chat and see if we can help you with your goals and mission.
I design simple and effective social media and Facebook ads strategies helping gifted not for profits and businesses for purpose leverage their social media technology and loyal community to really power their mission, building more donations and creating impact. My work is custom solution aiming at the specific needs of your work.
There are many ways you can reach out to see if I am a good fit for your goals. Check out the Facebook Messanger bubble on the bottom right, contact page on the top and/or a form and a calendar, if this type of communication suits you better.
I look forward to supporting your vision of the future!