Google's Paid Out!

[raaowdot]

Tweet

I opened an intriguing letter this morning post stamped Sweden in a New York envolope and Google Ireland on the header.

Imagine the big smile on my face when I look at the bottom and there is a big fat juicy cheque for my VAT refund.

Couldn't have come at a better time. Thanks Google.

I hope everyone else gets the a lovely Brucy bonus too. Merry Xmas.

Nadoleg Llawen a Blwddyn Newydd Dda, Mike Tree.

[tezar]

I finally received mine today as well, except theyve given VAT back for whole period I've had my account rather then just period I asked for.

[Bod]

I got one too....

Although i was only looking at so much, they gave me well into 4 figures, but i havent spent that much on vat.... still might have to check and work it all out to see if they have overpaid me.....

But yes happy as larry

[KirstyM]

I must admit all this Google Vat malarkey still has me fairly befuddled.

Is it those who are VAT registered getting refunds, or everyone who is using adwords for business purposes on the basis that they should be self assessing?

I've read all the threads, and Googles information.. and I still don't know!

[tezar]

KirstyM, Im VAT registered and this cheque recieved was VAT refund.

[Bod]

Im not VAT reg, but is now self assessing and got me cheque as stated above

[Wardy]

Are any of those getting VAT back from before they got VAT registered or just for VAT you paid once you got VAT registered and hadn't updated your details?

I was told you could claim upto 6 months VAT back from before you got VAT registered but hamy accountant had no luck with this?!

Cheers
Wardy

[Pete Taylor]

Everyone who has declared they use Adwords for business is getting ALL the VAT paid back. Even people who claimed previously, will now get the remainder back, not just the last 6 months.

The real issue now is, how do you unravel all this with our own VAT people?

Do you keep the lot?
Do you include it on your VAT return?

The whole issue has left a big mess.

[bazza1603]

Hi,

If you self assess VAT...does this not mean you have to included Google invoices on your Turnover amount as Google is not a UK company?.

Turnover £40000
Google adword Spend £20000

Total £60000

Does this mean you end up paying more income tax? I keep getting different answers...

This to me is to good to be true!

Baz

[crazihos]

Can I ask those who have had a refund roughly how long has it taken to come through? It would be nice to get some of it back from them and my other companies VAT registered so I can use that VAT number.

Cheers

Russ

[ian]

***Please do not take this as gospel truth. The VAT inspector will tell you want the truth is when they make it up ***


I'm not sure where the bit about adding the Adwords spend to your income has come from, but if you self assess VAT you....

Add the 17.5% tax due on Adwords (but not paid) to the 17.5% VAT due on your sales.

You then reclaim the VAT paid on acquisitions i.e. Adwords, and the difference between the two is what you have to pay up.

If you bung it all into an accounts package with the correct tax codes, it works this out for you. Have a look at http://www.businesslink.gov.uk/bdotg...mId=1073790790

As far as I can tell, self assesed VAT in this case is a way to confuse people and keep accountants in business.

Thanks
Ian

[Bod]

In not confussed by it. Its simple your spend on Google added to your income commissions if its over the figure ( 55,000 I think ) then you have to register for Vat.

I got the info from my advisers...

[ChrisM]

I just got my chque and it reflects the total VAT paid at the Irish rate of 21% between 1/1/04 and 29/11/05. Any payments of VAT at 17.5% have been excluded.

I think I'm right in saying that I now owe someone (just not worked out who yet - but probably HMCE) 83.33% (divide by 21% irish rate multiply by 17.5% UK rate) of this rebate. I did ring HMCE up about it - and they seemed as confused as everyone else but ultimately came to the same conclusion.

[Barry]

From what I gather, you can only get google to remove the Irish Rate of VAT (at 21%) from your account if you register with them as a business (with a UK VAT number). This is because you only have to pay Irish VAT if you are a consumer within the EU buying from Ireland or a business that is from outside the EU altogether and buying from Ireland.

Of course you can tell google you are a business without giving them a VAT number and they will still waive the VAT (not sure this is correct either factually or legally) - but you will be still be responsible (like a VAT registered business is) for contacting HMRC and paying the 17.5% VAT that was due on your spend to the UK government.

Or at least that is my take on the situation.

I believe that at the moment they are trying to write some new laws around the whole thing and to iron out the questions.

Trading electronic information or services or 'over the wire transactions' with nothing 'hard or real' changing hands within the EU has not been around for long and as normal laws/legislations are generally invented on a 'needs be' or 'in hindsite' operation. So they are a little behind the times.

If you ask me its just confusing thinking about it. - So I'm not going to anymore!

One more thing - is anybody still waiting for their cheque, I have had one for my clients account, but not for my main account. I was wondering if anybody else was waiting too?

Ta

[ian]

I've got one cheque but still waiting for my main account.