The Impact of VAT on Advertising Budgets and How to Save with BudgetMaxx

Advertising is a key element in the successful promotion of businesses, and its share in company expenses is constantly growing. However, tax changes can significantly impact advertising budgets, so it is crucial to have information about the VAT rate on advertising in your country and how it can affect your business. In this article, we will explore up-to-date information on VAT rates on advertising in 2023 and discuss the opportunities provided by our service for legal savings.

Previously, before the introduction of VAT, companies planned their advertising budgets without taking this tax into account. However, with the implementation of VAT in different countries, strategies and cost analysis have changed as companies started considering this tax when budgeting. Understanding different VAT rates has become critically important for optimizing advertising budgets and selecting profitable markets, which directly affects business performance, including return on investment (ROI).

The cost of advertising campaigns can significantly increase in different countries due to high VAT rates on advertising.
There are not many ways to reduce losses when paying this tax. However, when choosing a method, it must meet the following criteria:

  • legality;
  • ease of use.

Let's analyze two clients and their advertising campaigns to visually demonstrate how VAT affects the advertising budget and how the BudgetMaxx service can help save on advertising expenses.

The first client is a canine specialists group who set a goal to promote a free course. The initial advertising budget was $670. From this amount, 20% ($134) accounted for VAT, which the company had to consider and pay.

The second client is a Spanish language school. We decided to transfer this client to the BudgetMaxx service. The client's advertising budget was $2,500. Instead of directly paying VAT ($416), the client paid only a 9% commission ($225), and their final budget on the advertising platform amounted to $2,275 instead of $2,084. In other words, the savings amounted to $191 or 7% of the initial advertising budget.

This example demonstrates how using this service can help reduce advertising costs and save on VAT, allowing for more efficient allocation of the advertising budget and increased ROI. The service offers a unified account for managing various advertising platforms, enabling maximum savings of up to 14%.

Our service supports popular advertising platforms such as TikTok Ads and Google Ads, which allows reaching diverse audiences and increasing the visibility of your business. It also provides access to high-trust advertising accounts in Google Ads and TikTok Ads, guaranteeing improved performance of your advertising campaigns.

Service clients can take courses on working with Google and TikTok advertising accounts, including TikTok Reseller, as well as explore opportunities on YouTube, advertising formats, and receive tips for launching successful advertising campaigns.

Accounting for VAT on advertising in different countries is an important aspect of advertising budget planning. For more detailed information about the operation and project conditions of BudgetMaxx, please visit our website.