According to Facebook policy, accounts in these countries will be taxed when paying FB.

[Nhungphan]

According to FB policy, accounts in these countries will be taxed when paying FB.
Bahamas
Cameron
Indonesia
Kenya
Korea
Malaysia
Nigeria
New Zealand
Russia
The United States of Hawaii
United States New mexico
Vietnam
South Africa
Zimbabwe

 

[Graybeard]

Facebook is just collecting tax monies that are due to the country/state by law and remitting them back to that jurisdiction.

Better stated: Facebook is the tax collector for those countries.

Don't blame Facebook --they don't get to keep that money.

 

[Nhungphan]

I don't blame. I only list the countries that are collecting taxes for running Facebook ads. Maybe someone needs to know or not ))

 

[T J Tutor]

Youy government is the bad guy here ... Or, more correctly: the one: with his hand on the money in your pocket.

Exactly! Another case of the "xactlies"!

 

[Graybeard]

Facebook has a legal nexis they have offshore offices or assets in those countries or a legal obligation. I think you left out ALL of the EU --they charge the nation's VAT tax rate. Collect and remit.

Revenues from business-to-business services would be sourced to the jurisdiction where the business uses the service, which would be determined by looking at information provided by the business customer on place of use, any place of used identified in commercial documents, the billing address of a business customer that is not a large business, or some other “reliable indicator.”

OECD Issues Model Rules on Nexus and Sourcing

The Organization for Economic Cooperation and Development (“OECD”) issued model rules for nexus and revenue sourcing under Pillar One of the international tax agreement.

freemanlaw.com

Now commeth the taxman and the tax attorneys ...

Youy government is the bad guy here ... Or, more correctly: the one: with his hand on the money in your pocket.

 

[Honeybadger]

Where is The United States of Hawaii?

 

[Nhungphan]

Facebook and all META projects are banned in Russia anyway as I know

Why is it banned? I still have clients running ads in Russia

 

[Namphumy]

why the US, I have many customers using an ad account in the US, it is not taxed

 

[Graybeard]

Hawaii, USA
Something got lost in the translation.

In some states in the US: services and labor are subject to sales tax. In some states only physical goods or materials used in furnishing work. There is no national (federal) VAT like in Europe or other places have.

 

[T J Tutor]

As far as I know there are only 3 or 4 states that have any form of advertising tax. Most do not. As well, if the cost of advertising is born to an agency that is advertising on behalf of others then any tax liabilities are typically then the responsibility of the agency.

Here in NY (and pretty much everywhere), digital advertising taxes are a tax on the gross receipts that a company receives from selling advertising space to other businesses on their platforms. The purchaser of the advertising is not liable for any form of taxation as the advertising costs are 100% deductible both statewide and federally.

 

[Kokerabi]

Too good I'm not using facebook anymore.

 

[Graybeard]

I think @EliotHenry meant to say is perhaps *from* but only certain Russian Federation entities are banned by sanctions --the why part: is the illegal invasion of Ukraine over a year ago.

However, normal commerce by Russian Federation citizens with no invasion participation or collusion should not be subject to any ban.

But the topic was the collection of sales or VAT taxes on ad sales.

 

[The Media Agency]

Too good I'm not using facebook anymore.

You can use ad accounts located in non-taxable countries.

 

[The Media Agency]

I think @EliotHenry meant to say is perhaps *from* but only certain Russian Federation entities are banned by sanctions --the why part: is the illegal invasion of Ukraine over a year ago.

However, normal commerce by Russian Federation citizens with no invasion participation or collusion should not be subject to any ban.

But the topic was the collection of sales or VAT taxes on ad sales.

Some customers in Russia, they said in their country do not use Facebook. Is that really true or not?

 

[Graybeard]

Many US states do not tax services only physical goods.
Others do tax services --Internet Ads are services.
So maybe some transactions in some US states are taxed?

You have to be located in that tax class of US state. How that is located will vary by IP, payment method, customer supplied data (like an address).

 

[Graybeard]

Taxes on Meta ads placement​

The US is not listed --I am going to assume Meta's Legal Department got this right