Issue with VAT in the UK

Discussion in 'Google AdWords' started by StrawberryPaul, Dec 19, 2007.

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  1. #1
    Can anyone please explain how AdWords works in the UK regarding VAT?

    My invoices tell me I need to self assess and confused where to start
     
    StrawberryPaul, Dec 19, 2007 IP
  2. bl4ckmaN^

    bl4ckmaN^ Well-Known Member

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    #2
    If you are not a registered company in UK, you do not need to fill anything in about VAT when you sign up with Adwords.
     
    bl4ckmaN^, Dec 19, 2007 IP
  3. StrawberryPaul

    StrawberryPaul Active Member

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    #3
    And if you are?
     
    StrawberryPaul, Dec 19, 2007 IP
  4. scipilot

    scipilot Peon

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    #4
    If you are talking about Adwords you pay google for, you need to contact Google and they will exclude VAT from being charged to your bill.

    If you are talking about Adsense and you paying VAT i'd also like to know more.
     
    scipilot, Dec 19, 2007 IP
  5. pondlife

    pondlife Peon

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    #5
    If you're in the UK and you're using AdWords for business then it's going to cost you 17.5% more than it used to - that's the way I see it... unless you're VAT registered and you can claim it back...

    Don't mess the VAT man - he's worse than the TAX man ;)
     
    pondlife, Dec 19, 2007 IP
  6. hmc

    hmc Peon

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    #6
    Yep, I'm interesting to know more regarding it.
     
    hmc, Dec 19, 2007 IP
  7. selleradwords

    selleradwords Peon

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    #7
    I was looking fot that but many people tell me different things
     
    selleradwords, Dec 19, 2007 IP
  8. dburdon

    dburdon Peon

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    #8
    Strawberrypaul,

    Google in Europe operates from Dublin in the Republic of Ireland. If you use their service in the UK you are normally liable to the Irish VAT rate which I recall is 19.5%.

    You can avoid this if you are VAT registered and you are buying Adwords as part of your business. You do not need to be incorporated. There is a section within the Google Adwords "My account" section where you submit your VAT number.

    If you've not organised this properly you will need to reclaim Irish VAT.
     
    dburdon, Dec 19, 2007 IP
  9. StrawberryPaul

    StrawberryPaul Active Member

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    #9
    Thanks for the advice, I contacted the VAT office who informed me that I only need to record this on my paperwork, work out the 17.5% and then add to to section 2 and 4 of my VAT returns form.

    If anyone knows different to this I would be interested to hear more.
     
    StrawberryPaul, Dec 19, 2007 IP
  10. Masterful

    Masterful Well-Known Member

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    #10
    Can someone explain this a little more clearly, please?

    Do you only pay VAT if you have a registered business?
     
    Masterful, Dec 19, 2007 IP
  11. pondlife

    pondlife Peon

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    #11
    Nope, you'll pay VAT on all your advertising... and you have to pay VAT if your business turnover is more than 50k (GBP)...
     
    pondlife, Dec 19, 2007 IP
  12. MarkGHero

    MarkGHero Peon

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    #12
    Just a some more food for thought.

    Does VAT apply to Google AdWords?

    Yes. As of 1st July 2003, all AdWords accounts with European Union (EU) business addresses became subject to Value Added Tax (VAT) charges. In addition, as of 22nd January 2004, all EU advertisers moved from being an advertiser with Google Inc. (United States headquarters) to being serviced and billed by Google Ireland Ltd (EU).

    Advertisers with a business address in the EU, but outside Ireland, may self-assess VAT at their Member State's local rate if they are using Google AdWords for business purposes.


    Listen Google has a great help section about this.

    http:// adwords.google.co.uk/ support/bin/search.py?query=VAT&type=f&ctx=en-uk%3Asearchbox
     
    MarkGHero, Dec 19, 2007 IP