Recently, Meta announced an important update regarding the management of advertising costs. Starting July 1, 2026, local levies will be introduced on certain ads, linked to the tax regulations of different countries.

This is a development that doesn’t overhaul advertising strategies, but it is useful to know in order to better manage budgets and planning.

What are local levies?

Local levies are additional costs that Meta may apply to advertising campaigns to cover certain expenses related to local tax regulations, specifically Digital Services Taxes (DST).

These costs do not depend on the location of the company advertising, but on the location of the audience reached by the ads. For example, if a campaign is targeted at users in Italy, the levy set for Italy will apply.

What are the expected percentages?

At the moment, Meta has indicated several percentages for major European countries:

  • Italy: 3%
  • France: 3%
  • Spain: 3%
  • Austria: 5%
  • Turkey: 5%
  • United Kingdom: 2%

These percentages may vary over time based on regulatory updates.

How local levies work in practice

The levy is applied after the ads are delivered and is not included in the budget set on the platform.

Let’s look at a simple example: a €100 campaign targeted at Italy will have a final cost of €103, to which VAT will then be added. This means that the real cost of campaigns will be slightly higher than the planned budget.

Why is Meta introducing these costs?

Meta explained that this decision is linked to the evolution of tax regulations in different countries, particularly digital services taxes. While these charges were previously absorbed by the platform, they are now being passed on to advertisers. It is likely that other Big Tech companies will adopt a similar approach in the future.

What changes for companies and advertisers

From an operational standpoint, there are no changes to campaign management or advertising tools.

The main difference concerns cost transparency, as they will be listed separately on the invoice, and a slight variation in the final cost of campaigns.

For this reason, it may be useful to:

  • consider a small additional margin in budgets
  • carefully monitor actual costs
  • evaluate potential campaign optimizations

A change to be aware of, not to be feared

This is an update that fits into a broader context of digital regulatory and tax evolution.

It is not a change that directly impacts campaign performance, but rather their financial management.

Being aware of these dynamics allows for more precise planning and continued effective and sustainable investment in advertising.

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