Is there GST on Google Ads?

Google Ads is one of the most popular digital marketing strategies. Business owners love it for its fast results and great return on investment.

They are easy to get into and set up, and if you have an Ads expert by your side, are extremely effective. Now with so many business owners using the platform, there are a lot of questions regarding its tax implications. We are answering one of the most common questions, is there GST on Google Ads? 

What is Google Ads? 

Google Ads is an online advertising platform designed to allow business owners to promote their products or services in Google search, Youtube, and other websites across the internet. It is a platform that thrives on its fast results and great returns when used correctly. Businesses use these ads to drive new customers to their website, increase phone calls, or more.  

The Ads are customisable, allowing you to target people with specific interests, locations, ages, gender and more. You can also target particular search terms to find people who are interested but outside your typical customer demographic. Budgets are also fully customisable, allowing you to spend as much or as little as you want.  

What is Google Adwords? 

Google Adwords is the former name of Google Ads. There also used to be a Google Adwords product called Google Adwords Express. These were all combined in 2018 to form Google Ads. With this, Google redesigned the dashboard and made Google Ads more powerful with increased access to data.  

Is there GST on Google Ads? 

In 2016 Google was required to apply GST to Google Adwords on every bill. That year the laws surrounding GST and offshore companies changed, forcing Google and other similar companies to register for GST. This means that all Ad networks in Australia must now charge GST, including Facebook Ads and Bing Ads.  

Can I claim GST Credits on Google Ads? 

The great news for business owners who purchase Google Ads is that they can claim GST Credits on the purchase. As long as you are registered for GST you can declare the GST paid on your BAS, allowing you to claim back the GST you paid as a GST Credit. This makes the ROI for Google Ads even higher.  

Google Ads GST question	Answer	What this means for your business
Is there GST on Google Ads?	Yes. Google Australia Pty Ltd charges 10% GST on Google Ads for accounts with an Australian billing address.	Your Google Ads charges will include GST on top of your ad spend.
What is the GST rate on Google Ads?	The standard GST rate of 10% applies to Google Ads in Australia.	If you spend $1,000 on Google Ads, you will usually see $100 GST on your invoice (total $1,100).
Can I claim GST credits on Google Ads?	Yes, if you are registered for GST and the ads relate to your business.	The GST shown on your Google Ads tax invoice can generally be claimed as an input tax credit on your BAS.
Do I need to be registered for GST to claim it back?	Yes. Only GST-registered businesses can claim GST credits.	If you are not registered for GST, the GST on your Google Ads becomes a cost you cannot claim back.
Where do I see the GST amount?	On your Google Ads tax invoice, which will show Google Australia Pty Ltd as the supplier, their ABN and a separate GST line.	Download your monthly invoices from the Billing & payments section of your Google Ads account and use them when preparing your BAS.

How do I register for GST? 

To get the most out of Google Ads you should register for GST. Fortunately, registration is easy with GSTregister.com.au. We do all the hard work for you, all you need to do is fill out a simple form.

Our team will check to make sure you submitted all the information correctly, then will deal directly with the ATO on your behalf to make your registration easy. If you have any further questions you can also talk to our team members.  

For an easy GST Registration, register with GSTRegister.com.au today.