VAT - Google Adwords

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I use Google Adwords, started July last year, up until January Google charged me VAT at the Irish rate of 22% (thats where their based) but as i'm in the UK and use Adwords for business purposes they said i don't need to pay it.

They sent me a cheque for the vat I paid up until January, now they are not even charging me the UK rate, they are charging no VAT at all.

I'm not VAT registered and I don't intend to be.

What happens ? do I just continue paying no VAT at all or do I need to pay it eventually ?, if I have to pay then I will but I don't want to carry on as I am and then receive a letter saying I owe a huge VAT bill.

Any advice will help.
thanks.

cash99

Advertising services are covered by the VAT reverse charge rules, when supplied form outside the UK. Take a look at paragraph 15.11 on the attached link.

If the value of your sales plus the value of the reverse charhe services exceeds the Vat registration threshold, then you need to register for Vat.

As long as the advertising is provided for business purposes, and you are under the the Vat registration threshold, you have no Vat liability in this instance.

If you are in any doubts, after reading the attached link, seek professional advice.

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000346&propertyType=document#P568_70398

ks62uk

If you are using Adwords and are registered under the flat rate scheme for VAT, although you have to include Adwords in your VAT registration calculation, you do not have to include it on your VAT return.

HMRC VAT guide 733 section 6.4
If your business purchases services from outside the UK to which the reverse charge applies

you do not make any adjustment to your flat rate turnover for these supplies.

For more information about reverse charges, see Notice 700 The VAT Guide.



( info from http://tips.hrbs.biz/vat/adwords-and-your-vat-return/ )

aloevera_3

Hi, Sorry to question again - but just wanted to clarify.

I've been using google adwords since June 2004 and was not aware of this VAT issue. I'm self-employed use adwords for business purposes but I am no where near the threshold to register / pay VAT.

Having just totted up how much I've paid in VAT since this date it is in excess of £2000 - does this mean I should apply for this back from Google?

Also... would I then be expected to pay 17.5% or not seen as though I'm not registered?

Thanks in advance

ks62uk

reclaim the Irish VAT from Google by changing your account status to business use from personal and you will get a refund.

Info from http://affiliate-marketing-specialists.com

howto article: http://tips.hrbs.biz/index.php/vat/claim-a-google-adwords-vat-refund/