Ok! Finally, the term ‘15% VAT’ has been imposed on the Digital Platform in Bangladesh. As you all know, 15% Vat on Media Buying has been imposed. The Bangladesh government has decided to take 15 percent value added tax or VAT from the advertisements on internet platforms like Facebook and YouTube. Is it a big bummer for the Digital platform-centric business owners? Maybe yes! Or most probably NO!
You can express your own opinion below in the comment.
Going to the main topic, How will you consider the issue? Especially, this VAT has created a big impact on the Facebook business owner. Because Facebook business owners have very little budget to accelerate their business. But we have also pointed out the following things regarding the VAT issue:
The issue may filter out a few unnecessary sponsored advertisements:
As our Facebook is already flooded with the necessary & unnecessary Advertisements, it may discourage the non-ethical (who has a fake/ duplicate product) Facebook page owners who have a short-term plan to generate revenue by fooling customers.
So, the ultimate goal would be to get the perfect owner with the perfect media buying budget.
According to the Bangladesh Bank Report, the National Board of Revenue or NBR will ask the central bank to take steps to ensure that the banks will collect tax from the Bangladeshi advertisers. This means the Advertising agencies are bound to share VAT reports from now on.
So the agencies will also collect the given 15% VAT on Media Buying from their clients too. As a result, the clients will also be bound to pay the amount as instructed.
Advertisers will be more conscious about the spending:
Ultimately the advertisers will be more tactical while spending on Facebook, Google & Youtube advertisements as the charge will be increased. They must be a bit calculative than before boosting any post.
Bummer for the random Facebook post booster & Freelancer:
Till now, the people who used to boost their page by their own credit card will be really disappointed to see the incensement of VAT. As they will see the extra charge will be deducted from their credit cards. Another red signal for the Freelancer Digital Marketer as they will face the same problems.
As we are in the Digital Business field for a few years, we can understand the current situation of the digital marketing area in Bangladesh. According to our experience, Small-medium enterprise to a few top-notch brands; many of them still prefer to do media buying from the freelancer as they want to save extra money.
So those brands will also face the 15% Vat on media buying that many other freelancers are facing. What’s your opinion on this section now? Do you agree with my opinion on 15% vat on Media Buying?
NOW you have to make the decision on 15% Vat On Media Buying:
Maybe now you are pretty serious about the media buying thing. Most probably you want to do ‘Digital Marketing’ or ‘Media Buying’ for your business brand/ business page. What will you do now? Being afraid of the imposed VAT? Or you are motivated enough to do the Digital Advertisement for your Business?
I can assure you that, you have to be active on Digital Platforms to survive in the market as you will get the highest number of potential clients from this media.
Now the decision is yours! Don’t forget to leave your comments below.