# Accounting for Digital Marketing Agencies: Reverse-Charge VAT on Google and Meta Ad Spend

> How Turkey's reverse-charge VAT obligation applies to payments digital marketing agencies and advertisers make to non-resident platforms like Google and Meta.

Source: https://sinemyavuz.com.tr/en/blog/digital-marketing-agencies-google-meta-ads-vat
Category: Tax Advisory
Published: 2026-09-15
Updated: 2026-09-15
Author: Sinem Yavuz, Certified Public Accountant (SMMM) — SMMM Sinem Yavuz: Finance, Accounting & Advisory Office

Digital marketing agencies and e-commerce businesses move substantial budgets to Google Ads, Meta Ads and similar platforms every month. But the VAT dimension of these payments is frequently overlooked, especially by newer agencies and e-commerce businesses.

## Why Does a VAT Obligation Arise at All?

Platforms like Google and Meta aren't established in Turkey, and for standard B2B advertising services, they don't issue Turkish VAT invoices. Under Turkish VAT law, services received from abroad and used in Turkey fall within the scope of VAT — but since the service provider is based abroad, the Turkey-based recipient of the service must self-assess and declare that VAT itself, acting as the responsible party. This mechanism is referred to locally as "2 No'lu KDV" (reverse-charge VAT).

## How Does Reverse-Charge VAT Work in Practice?

The business paying for the advertising — whether an agency or a direct advertiser — calculates VAT on the amount paid and declares and pays it via the reverse-charge VAT return. If that same business is VAT-registered and the expense relates to its business, it can then deduct that VAT on the same period's standard VAT return. Applied correctly, these two entries offset each other and create no net cash cost — the real risk is simply never declaring it.

## Don't Confuse It With Turkey's Digital Services Tax (DHV)

Turkey's Digital Services Tax is a separate obligation paid by digital service providers that exceed a certain revenue threshold, based on their own Turkey-sourced revenue. The advertiser has no direct obligation under this tax — though platforms sometimes pass part of this cost on through ad pricing, declaring and paying DHV is the platform's own responsibility. Reverse-charge VAT is an entirely separate obligation that falls directly on the advertiser.

## How Should Agencies Structure Their Invoicing?

Digital marketing agencies typically use one of two models:

1. **Managing the ad budget in the client's name:** The ad account is opened under the client company's name, payment flows directly from the client to the platform, and the reverse-charge VAT obligation sits with the client.
2. **Managing the ad budget through the agency:** The agency pays the platform in its own name and invoices the client for its service fee plus the ad spend combined; in this case, the reverse-charge VAT obligation sits with the agency, which then applies standard VAT on its invoice to the client.

Making clear in the contract and in the accounting records which model applies is critical — both for placing the reverse-charge VAT obligation correctly and for recording expenses and revenue on the right side.

## Common Mistakes

- Recording the ad spend as an expense but never declaring the reverse-charge VAT at all
- Declaring reverse-charge VAT but forgetting to deduct it on the same period's standard VAT return
- Leaving it unclear in the agency-client relationship who is responsible for the reverse-charge VAT

## Our Advisory Services for Digital Marketing Agencies

We track your monthly payments to Google, Meta and similar platforms, and make sure reverse-charge VAT is declared on time and deducted in the same period. We help structure your agency-client invoicing model so the reverse-charge VAT obligation is clearly and correctly reflected in your records.