Thread: Adwords to charge VAT

Is this an April Fools?

Nope sorry

Jamie,

cheers for the heads up on this sir.

did try sending you a message but your inbox is disabled.

Shak

Is it just me then that is charged US cents per click??
Surely they will have to change to pounds sterling if they want to charge VAT??

Just more paperwork for the VAT return:|
Andrew
Tech Enterprises

"Just more paperwork for the VAT return"

...and, for those of us who are not VAT registered, it is a huge tax hike. An additional 17.5%!

We have already suffered huge tax increases here in the UK with National Insurance, Council Tax, Congestion Charging etc. in the last few months

At least life if a breeze for losers and lazy people in the UK - that's where my enormous taxes go. What's the point working day and night if the government just takes a huge chuck of MY money and doles in out to the millions of people who are not working for one reason or other?

Incidentally, I've noticed that the new tax is not going to affect companies outside the EU, even if they advertise via Adwords UK. Therefore, dot.coms based in the US, India or wherever will have a huge competitive advantage - an additional 17.5% profit margin over non-registered UK firms. Or am I mistaken?

I believe CJ are going to add a currency option so that you can elect to be paid in $US or £ later in the year.

What has the EU got to do with BRITISH VAT. If anyone more knowledgeable could elaborate or is is part of the wonderful EU bureaucracy.

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From Adwords

New European Union laws effective 01-Jul-2003.

New laws require Google to collect your VAT status.

EU Consumer or an EU Business without a VAT #. Please note: VAT will be added to your bill as of 01-Jul-2003.
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If you pay VAT then you must be furnished with a VAT invoice prior to you making payment. Otherwise the accountant and Customs and Excise will not be too pleased, and it could prove a headache when claiming this back.

Currently I don't believe Adwords provide these, do you have to request them or is it available from the interface?

I would imagine that they will simply intergrate a download function into the interface rather than sending out invoices every 10 days.
Adwords don't currently provide invoices but then they haven't charged VAT up until now.
I fully appreciate that those who are not VAT registered are going to be hit hardest by this change, but i suppose they are just following suit with espotting and overture.

As long as you can claim the VAT back not sure what difference it will make.

Only thing I have never heard of if paying VAT to a US company, unless because they are about to open up in Ireland that they plan to bill everyone in Europe from this location and so you will of course have to pay VAT because it's a European company.

And yes they will have to supply us with a VAT invoice, however not sure how they will manage that as I also pay in USD and not UKP as my account was set-up before they offered that option, plus it's cheaper.

For those who are not VAT registered:

17.5% tax on all your advertising via Google Adwords etc.

Then, when you do make a sale of a CD or DVD via Amazon, BlackStar etc., they deduct 17.5% before giving you your commission, which is a measily 5% to start off with. So, instead of 50p on the sale of a DVD at Amazon.co.uk or BlackStar.co.uk, they pay us about 40p.

= double VAT = <strong>35% tax</strong>!

Life is OK for the rich and the very poor in Britain, but, if you're stuck in the middle, then life is just a struggle.

Yesterday, byy mistake, a company I do some work for sent me the wage slip of one of their computer programmers. The guy was earning £55 an HOUR. Life is OK for him, or the majority of you here who will be experiencing a "£50,000 or more <strong>increase</strong>" in profits this year alone. Not turnover, but pure profits - and an increase at that!

As for me, I'm not as smart as you guys: I don't know how to make good money online. Think I'll go into the child-rearing business. Far more profitable than earning 40p on the sale of a CD (if you're lucky). £500 quid per child born + child benefit + income support + free school meals + free health care + free prescriptions + free council house + spend bank holiday weekends playing with your kids in the park instead of sitting in front of your computer.

oh yeah sorry, forgot about people not vat registered, oops!

It's a bit more paper work but anyone can register for VAT - there is no lower limit.

Aly

Ballswinger - adwords do provide invoices. There is an option to print them off from the report of charges.