*This article does not represent financial advice. You should always speak to a professional about your situation.
Are you considering using Facebook advertising to promote your business but wondering if you need to pay GST on your ad spend?
If so, you’re not alone! In this blog post, we’ll explore the GST implications of Facebook advertising and guide handling this tax.
GST stands for Goods and Services Tax, a value-added tax levied on most goods and services in Australia. If you are registered for GST, you are required to charge GST on the goods and services you sell, and you can claim credits for the GST included in the price of the goods and services you buy for your business.
The answer is yes – Facebook advertising is considered a taxable supply for GST purposes. It means that if you are registered for GST and use Facebook advertising to promote your business, you will need to pay GST on your ad spend.
However, there is an exception to this rule. If you are an “entity with an annual turnover of less than $75,000,” you may be eligible to claim the GST-free threshold.
It means that you do not need to charge GST on your taxable supplies, and you cannot claim credits for the GST included in the price of your purchases. If you fall under this threshold and use Facebook advertising to promote your business, you will not need to pay GST on your ad spend.
It’s important to note that the GST-free threshold applies to your annual turnover, not just your Facebook ad spend. If your annual turnover exceeds $75,000, you will need to pay GST on your Facebook ad spend, even if your ad spends less than $75,000.
So, if you are registered for GST, and your annual turnover exceeds $75,000, you will need to pay GST on your Facebook ad spend. If you are registered for GST, but your annual turnover is less than $75,000, you will not need to pay GST on your Facebook ad spend. And if you are not registered for GST, you will not need to pay GST on your Facebook ad spend.
We hope this blog post has clarified the GST implications of Facebook advertising. If you have further questions, don’t hesitate to contact a tax professional for guidance.
Up until working with Casey, we had only had poor to mediocre experiences outsourcing work to agencies. Casey & the team at CJ&CO are the exception to the rule.
Communication was beyond great, his understanding of our vision was phenomenal, and instead of needing babysitting like the other agencies we worked with, he was not only completely dependable but also gave us sound suggestions on how to get better results, at the risk of us not needing him for the initial job we requested (absolute gem).
This has truly been the first time we worked with someone outside of our business that quickly grasped our vision, and that I could completely forget about and would still deliver above expectations.
I honestly can't wait to work in many more projects together!
Disclaimer
*The information this blog provides is for general informational purposes only and is not intended as financial or professional advice. The information may not reflect current developments and may be changed or updated without notice. Any opinions expressed on this blog are the author’s own and do not necessarily reflect the views of the author’s employer or any other organization. You should not act or rely on any information contained in this blog without first seeking the advice of a professional. No representation or warranty, express or implied, is made as to the accuracy or completeness of the information contained in this blog. The author and affiliated parties assume no liability for any errors or omissions.