Hi,

I have posted this in VAT and accounts section as well but thought it was vital that everyone sees this.

Does this mean if you are not vat registered as a UK business but have been paying them their 21% we are entitled to 3.5% rebate 21-17.5) ?


Hello from the Google AdWords Team:

Google Ireland Limited recently received clarification from the Irish Revenue Commissioners regarding the self-assessment of Value Added Tax (VAT) by European Union (EU) AdWords advertisers. All VAT billing for EU advertisers is subject to Irish VAT law, as Google's European Headquarters are based in Ireland. Qualifying advertisers may now self-assess VAT at their EU Member State's applicable rate, and file for a refund of past VAT charged by Google Ireland Ltd. (all refunds will be issued by Google Ireland Ltd., and not the Irish tax authorities). To be eligible to self-assess VAT at your Member State's local rate, the following statements must both be true:

Your business address is within the EU, but outside Ireland.
You advertise with AdWords for business purposes.
What is changing

EU VAT legislation states that unless you are using AdWords for business purposes we must charge you VAT at the rate of the country in which we are established (Ireland). Previously, we have required that advertisers supply a valid VAT number in order to self-assess VAT at their EU Member State's applicable rate.

As of June 1, 2005, advertisers may declare they use AdWords for business purposes, and self-assess VAT due on AdWords services. Where possible you should supply a valid VAT number; however this is not obligatory in order to self-assess VAT due on AdWords services.

How this will affect you

If you are using AdWords for business purposes, and your business address is located in the EU (but outside Ireland), Google will no longer apply Irish VAT to your account. You should now self-assess to ensure that you pay VAT at the local rate of the member state in which your business address is located. Although it is not obligatory, entering your VAT number in your AdWords account provides adequate proof that you are advertising for business purposes.

What you should do

If you believe that you are eligible for a VAT refund, please update your VAT information on the 'Billing Preferences' page (within the 'My Account' tab) in your AdWords account. We strongly encourage you to enter your VAT number so it may be included with your AdWords bills. After you submit the required information, we will review your account and contact you regarding your eligibility. We appreciate your patience while we work to process refunds.

If you are eligible for a refund of VAT charged by Google, please do not seek a refund directly from the Irish Revenue Commissioners via an Eight Directive reclaim. Any refund due will be dealt with by Google, and a refund check will be mailed to the business address listed in your account.


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We hope these changes will simplify your VAT assessments. Please note that Google AdWords cannot provide advertisers with VAT advice. For general information about VAT rates, self-assessing VAT, or receiving services for a business purpose, please consult your local tax office.

We look forward to providing you with the most effective advertising available.

Thank you,

The Google AdWords Team