VAT On Adwords

[Pete Taylor]

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Has anyone received a refund cheque from Adwords with regards the new VAT arrangements?

This question is only valid to people who have now declared that they have paid VAT at the Irish rate and have now informed Google that they use Adwords for business purposes.

[ChrisM]

Hi Pete - what a coincidence - I was just looking for that exact thread from a few months ago and couldnt find it!

I've not heard a thing.

Chris

[Reddy]

Me neither - not heard a thing yet.

David

[raaowdot]

I asked them last week and they told me this:

"Thank you for your email. I can confirm that our records indicate you have updated your VAT information and VAT is no longer added to your invoices by Google.

VAT paid in the past will be automatically refunded to you. Please note that this process takes approximately four weeks from the time you update your VAT information. Thank you for your patience."

[Pete Taylor]

I asked them last week and they told me this:

"Thank you for your email. I can confirm that our records indicate you have updated your VAT information and VAT is no longer added to your invoices by Google.

VAT paid in the past will be automatically refunded to you. Please note that this process takes approximately four weeks from the time you update your VAT information. Thank you for your patience."

That's the same mail I received. The original Email from Google was sent in July, so the cheques must be arriving soon, then the fun begins!

[Barry]

I'm still waiting on it as well. There is only another week left of those 'four' weeks I was told to wait - so fingers crossed the cheque should arrive soon

[bapages]

I have, if you are using euro, you have to officially request in writing from the ireland office with all the usual info and a copy of the VAT registration.

[Pete Taylor]

I have, if you are using euro, you have to officially request in writing from the ireland office with all the usual info and a copy of the VAT registration.

You received your refund under the old system when you had to fax your details to Ireland.

Google are now going through all adwords accounts that have been used for business since they started charging VAT and refunding ALL VAT paid previously. You will recive a refund of ALL VAT paid at 21% to Ireland and then you will need to pay VAT at your local rate to your own goverment (17.5% in Britain).

[Shane]

it will take four weeks methinks.. took at least that for me I seem to recall

[Pete Taylor]

Shane,

Are you refering to your own personal claim for VAT via a fax to Google or are you refering to the new rules, that will give you back all the VAT paid to the Irish Goverment?

Remember it is not a windfall, you will need to pass on most of this NEW rebate to the British Goverment.

As it stands, if you had spent £1000 on adwords for business and you have paid £210 to the Irish Goverment as VAT. This is now going to be returned to you, and you will now need to pay £175 to the British Goverment if you are based in Britain.

It is confusing, because folks are getting mixed up between their own claims for VAT after getting VAT registered and this new ruling which I have posted the Google Email below.

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.

I have also posted a reply from Google below.

Hello Peter,

I can confirm that anyone who uses Google AdWords for business purposes
is
entitled to a VAT refund. They may or may not have a VAT registration
number and they all must self assess their VAT charges at their EU
countries standard tax rate. Under the new legislation as long as
advertisers are using AdWords for business purposes they are entitled
to a
refund. It is now not dependant on having a VAT number.

I hope that this is all clear now and please let me know if
you have any further questions on this topic.

Sincerely,
Mark
The Google UK AdWords Team