How does the ad spend tax calculator work?
Borrowed from Tax arithmetic: GST/HST (Canada) and GST (India) on Google and Meta ads
Tax is added on top of the platform budget, so the invoice is the budget times one plus the rate. Registered businesses can often claim input tax credits, which lowers the true cost to the pre-tax amount.
UAE advertisers usually see 5% VAT. Rates change, and some provinces add separate taxes, so confirm with an accountant. Rates listed here are general and should be checked against current guidance.
Worked example
A Canadian advertiser sets a $10,000 monthly budget in Ontario, where HST is 13%. Tax is $1,300 and the invoice is $11,300. If the business can claim input tax credits, the effective cost stays $10,000.
How should I read my result?
Report ROAS on the pre-tax budget and track tax as a cash-flow item.
Treat tax as ad cost. Your break-even ROAS rises by the tax rate.
Ask an accountant before you set targets.
Embed this calculator
Questions about ad spend tax calculator
Do US advertisers pay this tax?
Usually not on these platforms. Sales tax rules for advertising differ by state.
Does the platform budget include tax?
Usually no. Budgets exclude tax and invoices add it.
Is this tax advice?
No. It is general information. Consult a qualified accountant.