Meta asks advertisers to pay for digital service taxes. These taxes apply to local sales made by tech companies. Meta sent an email to advertisers about new "location fees." These fees will affect digital ads shown in certain countries. This is true even if the advertiser is not in that country.
Meta owns Facebook, Instagram, and WhatsApp. The company says the extra fees start July 1. This is according to a Bloomberg report. Meta said it paid these fees until now. Google and Amazon also charge similar fees.
Companies buying ads on Meta platforms will pay extra. This amount equals the digital tax rate in the country where ads are shown. This includes picture and video ads. The policy applies to Austria, France, Italy, Spain, Turkey, and the United Kingdom.
The digital service tax rate is 3% in France, Italy, and Spain. It is 5% in Austria and Turkey. It is 2% in the United Kingdom. France first introduced its tax in 2019.
The company explained: "If you spend $100 on ads in Italy, you pay a 3% location fee. You will be charged $100 for the ad. You will also pay $3 as a location fee. The total is $103. VAT will be calculated on the total amount."
Several European countries have taxed sales from big US tech companies. These countries are not in the EU as a whole. Many tech companies make large sales and have millions of users in Europe. However, they pay little tax on profits. The goal is to collect taxes on value created locally.
The former US President Donald Trump's administration reacted angrily. They threatened to respond to European companies. This could involve special fees or limiting access to the US market.
Meta reported earnings of $201 billion in 2025. Most of this income came from ads. Net income was $60.5 billion for the same year.