About South Africa value-added tax (VAT)

Updated on June 10, 2022

A value-added tax (VAT) on Facebook advertising in South Africa will take effect beginning on 1 May 2019. Advertisers who have their ‘Sold to’ country set to South Africa are affected by this.

Ads Manager’s ad accounts settings allow you to enter your VAT identification number (also known as a VAT ID). VAT IDs are not required. However, your VAT ID will appear on your advertisements receipts if you’re VAT registered and give it. This could assist you in reclaiming any VAT you may have paid to the South African government.

Advertising on Facebook, whether for personal or business use, is subject to VAT, which is payable at the current rate of 23%. In addition to the charges, you may be charged more than your billing threshold because VAT is placed on top of them. In the event that you use a manual payment method to fund your Facebook ad account, VAT is accounted for at the corresponding rate.

As a reminder, Facebook cannot provide tax advice. Please contact your tax advisors or your local tax authorities with any questions you may have about taxes.

About “buying ads for business purposes”

On the other hand, whether or not you’re using Facebook advertisements for commercial objectives or personal, non-business purposes influences how VAT and GST are calculated.

For the vast majority of advertisers, Facebook advertising serves a commercial goal. Using Facebook advertising for business purposes means that you’re trying to get an economic advantage by promoting products or services. Affiliates, lone traders, self-employed merchants, partnerships, and other scenarios are all included in this category. –

About Australia’s goods and services tax (GST)

Facebook advertising sold by Facebook Ireland LTD in Australia will be subject to GST at the local tax rate beginning in August 2018. Australian-based businesses and individuals who do not have an Australian Business Number (ABN) in their Facebook ad account are affected by this policy. Using Facebook for business purposes necessitates the use of an ABN (Australian Business Number) to verify your GST registration.

Ads Manager’s Ad accounts settings allow you to include your ABN, which will appear on all of your ad receipts. Facebook will not charge GST on your Facebook ad purchases if you provide your ABN.

Regardless matter whether you’re purchasing ads for commercial or personal use, GST is added to your bill. There is a possibility that your final bill will be higher than your billing threshold amount due to GST being imposed on top of costs. A manual payment option for Facebook advertising means that GST is included in the total amount available for use in calculating your ad account balance.

As a reminder, Facebook cannot provide tax advice. Please contact your tax advisors or your local tax authorities with any questions you may have about taxes.

About India’s goods and services tax (GST)

Indian rupee-denominated ad purchases will be handled by Facebook India, which will bill for and collect taxes in Indian rupees, starting in October 2018. (TDS). All ad accounts with India as their business nation would be impacted by this change.

If you want to keep advertising on Facebook, make sure the following in Payment settings:

This payment method was added to your account and your company name, address, and goods and services tax identity number were revised.
For the avoidance of doubt, the GSTIN is not required. The only exception is if you’re a registered GST user and would like to claim Input Tax Credit (subject to the fulfillment of other applicable criteria under applicable law, where applicable).
Advertising in a SEZ may qualify you for GST exemption, so keep that in mind if you’re a SEZ resident. Your valid SEZ certificate must be sent to utl-indiagst [email protected] or via this link if this is the case for you.

Every time you’re charged for an ad, GST and TDS are included. Although TDS is included in the price, you are still obligated to pay it to the government in accordance with local regulations. A Facebook ad credit will be issued in lieu of a TDS refund once you present Facebook with a government-issued TDS certificate as proof of payment. Visit the Indian Tax Authority’s website for further information on TDS.

As a reminder, Facebook cannot provide tax advice. Please contact your tax advisors or your local tax authorities with any questions you may have about taxes.

About Turkey value-added tax (VAT)

Turkish tax laws have changed and Facebook Ireland LTD is registered for VAT in Turkey, which means Facebook ads in Turkey will be subject to value-added tax (VAT). If your business or personal address is in Turkey and you haven’t linked your Turkish VAT identification number (VAT ID) to your Facebook ad account, you are affected by this change.

Your VAT ID can be added to Ads Manager’s ad accounts settings so that it appears on your ad receipts. This means that by adding your VAT identification number to your Facebook advertising account, you are certifying that the Turkish value-added tax law applies to you and that Facebook does not charge VAT to your purchase of advertising on Facebook.

No matter if you’re buying Facebook advertisements for business or pleasure, you’ll be charged VAT on all ad charges. In addition to the charges, you may be charged more than your billing threshold because VAT is placed on top of them. In the event that you use a manual payment method to fund your Facebook ad account, VAT is accounted for at the corresponding rate.

As a reminder, Facebook cannot provide tax advice. Please contact your tax advisors or your local tax authorities with any questions you may have about taxes.