This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more hereX

Home > Discussion Forum

Discussion Forum

CDG CDG is offline
Entrepreneur
Join Date: Apr 2006
Posts: 19
Adwords and VAT

Hi All,

I am a UK VAT registered company and I use Google Adwords extensively.

Can anyone advise on whether I can claim back the VAT component of what I have spent on Google Adwords? I understand that I have a business relationship with Google Ireland, but my accountant seems to think I can't which just seems an absolute con.

Any thoughts/experience in this area?

Chris.
Reply With Quote
James Smith's Avatar James Smith James Smith is offline
Connector
Join Date: Mar 2003
Location: Abingdon, Oxfordshire
Posts: 2,044
Chris,

As with all non-UK entities you cant reclaim the VAT back directly on your UK return.

However again as with all non-UK entities what you need to do is let Google know you are VAT registered.

Once you provide them with your VAT number they will stop charging you Irish VAT.

And even better than that, they will also refund the VAT you have paid so far, subject to a time limit I think of 6 months from memory. There should be a FAQ on it on the google site.

I hope that helps you reclaim this.

Finally if you dont get all your VAT back there is a system for recovering intra EU VAT


Regards,
Reply With Quote
CDG CDG is offline
Entrepreneur
Join Date: Apr 2006
Posts: 19
Thanks James,

I did this - they are not charging me VAT, its itemised as zero on my invoice. Just looked more closely at the invoice and this zero about is asterisked with the following:

* Services subject to the reverse charge - VAT to be accounted for by the recipient as per Article 196 of Council Directive 2006/112/EC

So that means I need to fill out the return and calculate the VAT at the UK rate, but then include it as both input and output VAT, net sum zero?

Chris.
Reply With Quote
James Smith's Avatar James Smith James Smith is offline
Connector
Join Date: Mar 2003
Location: Abingdon, Oxfordshire
Posts: 2,044
Chris,

mad though it sounds yes that is the theory, not that many people actually bother! it wont affect the total VAT due unless you have a business that is "Partially exempt" ie some if with VAT and some not.

Regards,
Reply With Quote
m8internet m8internet is offline
Connector
Join Date: Apr 2008
Location: Cumbernauld, Scotland
Posts: 772
If you are using google AdWords, why are the invoices from them 0.00 ?

I have completed this process for all (non-Ireland) VAT registered companies I deal with, and they seem surprised this is possible
The process is a little cumbersome, but this is probably due to google AdWords having to check each case manually
These companies are then appreciative, and do agree the amount repaid (exempt) is small, but they should not have been paying it in the first place as the application form clearly states :
Country
VAT Number
Entering these details should have applied exemption automatically, or at least flag the account for manual review
__________________
m8internet.com
Professional website hosting in the UK
Windows Live / MSN Messenger
Reply With Quote
CDG CDG is offline
Entrepreneur
Join Date: Apr 2006
Posts: 19
Quote:
Originally Posted by m8internet View Post
If you are using google AdWords, why are the invoices from them 0.00 ?
The invoice is not zero, just the VAT component as itemised on the invoice - there's still a bill.

Chris.
Reply With Quote
m8internet m8internet is offline
Connector
Join Date: Apr 2008
Location: Cumbernauld, Scotland
Posts: 772
Quote:
Originally Posted by CDG View Post
The invoice is not zero, just the VAT component as itemised on the invoice - there's still a bill
That confirms what I thought would be the case, the item is non-VAT and shows as 0.00
Therefore claiming back the VAT is no longer appropriate
__________________
m8internet.com
Professional website hosting in the UK
Windows Live / MSN Messenger
Reply With Quote
Reply

Tags
adwords, vat

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT +1. The time now is 10:20 AM.


Powered by vBulletin® Version 3.8.1
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd. Copyright Shell LiveWIRE 2005-2009