Google Ads GST and tax invoices in Australia

If your business is in Australia, Google Ads adds 10% GST to your bill, charges you on a schedule that can mean several payments a month, and keeps your tax invoice somewhere many owners don’t think to look. This page explains each part from Google’s own help.

We’re not tax advisers. If you’re unsure how to claim GST credits on your ad spend, ask your accountant or BAS agent.

Who bills you, and the 10% GST

Australian advertisers sign Google’s advertising terms with Google Australia Pty Ltd, and the terms say charges are exclusive of taxes. Google’s tax page says all Google Ads sales in Australia are subject to 10% GST, for accounts with an Australian business address. The GST is charged when you pay.

Google’s help doesn’t say whether entering an ABN changes how GST is charged or whether it appears on the invoice, so check your own invoice. Google is clear that tax details can’t be changed after the fact on an invoice that’s already been issued, so add your business details before you need them.

Where to find your tax invoice

This is the part that catches people out. Your tax invoice is not the same as your payment receipt:

• Tax invoice: Billing > Documents > Tax and statutory documents tab. Choose the month and download the PDF. Each month’s invoice is available from the fifth working day of the following month. Google says these invoices are legally valid and accepted by tax authorities.
• Payment receipts: Billing > Summary, then open a payment. A receipt records one card payment; it isn’t the tax invoice.

Google doesn’t post or email these to postpay accounts, so download them yourself each month. Google renames menus from time to time, so the labels may differ slightly in your account.

To claim GST credits you generally need a valid tax invoice. The ATO’s tax invoice rules explain when you need one and what it must show.

How you pay: postpay, not prepay

Prepay isn’t available in Australia, so most small businesses use postpay (it used to be called automatic payments):

• Google charges you on the 1st of the month, or earlier when your costs reach your payment threshold.
• The threshold can rise automatically as you spend more, so you can be charged several times in one month. Your current threshold is on the Billing summary page.
• Visa and Mastercard cards are accepted. Google’s payment methods page lists everything available in Australia.

Monthly invoicing (a line of credit) is for larger advertisers. Google asks for a registered business of at least a year, an account at least six months old, and a minimum of $5,000 a month in 3 of the last 12 months (Google notes this can vary by country).

No Australian surcharge, but watch where your ads show

Google’s list of country-specific surcharges doesn’t include Australia. Those fees follow where your ads are shown, not where your business is based. If your ads also show in a country that has one, such as the UK (2%), that part of your spend carries it.

Dollars: set once

Your account’s currency is set for good when the account is created. An account set up in US dollars by mistake can’t be switched to Australian dollars; Google’s only fix is a new account.

Why a day can cost more than your daily budget

On any one day, Google can spend up to twice your average daily budget, but over a month it charges no more than 30.4 times the daily budget. See why Google Ads spent more than your daily budget.

Sources

• Google Ads Help: Taxes and GST, Invoices and statements, Postpay, Prepay availability, Monthly invoicing, Payment methods, Jurisdiction-specific surcharges, Currency.
• ATO: Tax invoices.