Affiliate VAT implications

[Jon12345]

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Let's say you have an account with Azoogle. You promote a UK offer using UK geotargetted PPC. Are there VAT implications here? What are they?

Also, same question but you promote a US only offer using US geotargetted PPC.

Thanks,

Jon

[Barry]

If you are using your adwords google account as a business then they do not apply VAT to your bill nomatter where or what you target your ads at. Its up to you as a business to self asses the VAT due.

Ta

[Travel Pixel]

if you are registered for VAT then...

Adwords is self assessed using the reverse charge rule as it is based in the EU (ireland).

Yahoo is standard VAT recording as based in UK

Adcenter is out of the scope as based in US.

D

[Jon12345]

If that is so, why does my Google Adwords account require my VAT number? How do you work out what your VAT should be since you might have your advert set to cover all countries and you cannot work out which countries got what clicks. Consequently, this means you cannot calculate vat liability, surely?

Also, if you are running an affiliate offer - set to geo global - once again you cannot work out vat on commissions. Anyone gone through this before? Must be a common issue.

[Travel Pixel]

Needs VAT number to put on the VAT invoices i would think.

Doesnt matter where the ad appears, it is deemed to have been supplied from the EU.

Dont qoute me on that though, just the words of several accountants and wise people on here.

Dave

[hrbs]

Hi

As Google Adwords is based in Ireland, as others have rightly said, VAT is dealt with as a Reverse Charge supply, irrespective of where the advert is actually served.
See various articles at Adwords And Your VAT ReturnBusiness and accounting tips from HRBS Accountants discussing this and how to account for the VAT.

Regards

Keith
Fixed Fee Accountants and Tax, VAT, Payroll Specialists providing proactive, professional service to small businesses - HRBSaccountants.com