Google Adsense Ireland - VAT registered or not?

narubi

Hi, I am new here. I am starting my own business as a sole trader in online advertisement - Google Adsense.

Somewhere I was reading that you don't have to pay the VAT as Google does it already... I was asking some accoutant and they have no clue...

So I am not really sure if I have to be VAT registered ot not. This is What google sais:

My payment address is in Ireland

Publishers with a postal address in Ireland will likely have to charge Google Irish VAT if they are registered for VAT in Ireland. All payments are being made by Google Ireland, a company incorporated under the laws of Ireland, in accordance with the terms of your agreement with Google. The services provided are subject to the reverse charge mechanism and so VAT is to be accounted for by the recipient, Google Ireland, per Article 196 of Council Directive 2006/112/EC. Please speak to your local tax advisors if you have further questions.
If you are required to send an invoice for your VAT remittance, please follow the steps below. Make sure to include ALL the required information, or we won't be able to accept your invoice.
Required Information

Step 1
Provide your supplier information through this form, taking note of the fields highlighted below:

• Supplier information: please include your VAT registration number
• Requester information: please enter requester name and phone number as 'AdSense EMEA Payments' and requester email as AdSenseVAT@google.com
• Supplier bank information: Please complete the International Bank requirements section including your IBAN and SWIFT details

Step 2
Your invoice must contain all the details listed below:

• The date the invoice was issued
• An invoice number
• Your VAT identification number
• Google Ireland's VAT number (IE6388047V)
• The payee name and address as shown in your AdSense account
• Google Ireland's full name and address:
  Google Ireland,
  Gordon House,
  Barrow Street,
  Dublin 4,
  Ireland
• A description of the services provided by the AdSense publisher (for example: "Internet advertising services")
• Payment date (this is the period for which the earnings were accrued, or the date on which the payment was issued)
• The taxable amount (this is the payment amount)
• The VAT rate applied as a percentage (this is a percentage based on the country in your AdSense account)
• The VAT amount payable (the exact amount as determined by the VAT%)
• Net payable (always equal to the VAT chargeable of the amount paid)

After you have included all the necessary information, you can send your invoice to this address for processing: AdSenseVAT@google.com
Once we receive your complete VAT remittance invoice, we will review and process it if your mailing address is in Ireland. Please allow 4-6 weeks for the invoice processing.

My payment address is not in Ireland

In this case, your payments are being made by Google Ireland, a company incorporated under the laws of Ireland. In accordance with the terms of your agreement with Google, the services provided are subject to the reverse charge mechanism and so VAT is to be accounted for by the recipient, Google Ireland, per Article 196 of Council Directive 2006/112/EC.
Please speak to your local tax advisors if you have further questions.

Thanks for any help. Really appreciated..

Graham

If this is an accountant who you are paying, I suggest it's time to find a new accountant.

Peterdalkey

If you are not VAT registered, the VAT is no issue for you as a supplier!

narubi

Graham wrote: »

If this is an accountant who you are paying, I suggest it's time to find a new accountant.

No I haven't paid anything yet. She was asking me if I want to be VAT registered, I said I don't think I need to be and I don't want to be so.

Peterdalkey wrote: »

If you are not VAT registered, the VAT is no issue for you as a supplier!

So until I don't meet the 37,500 threshold, I don't have to be VAT registered? If I understand it correctly, Google pays VAT for the publishers earnings because of the reverse charge, so the publishers don't have to pay it again, cause it's paid already right? Thanks.

Alan Shore

If your annual turnover is less than €37,500 then you are not obliged to register, you can if you wish.

Is all your turnover with Google Ireland?

If you as a VAT registered person invoice google Ireland then Irish VAT would apply. The reverse charge would apply if you were registered for VAT in another EU State. Not sure why the section quoted, for Irish registered persons, the reverse charge which would apply to intra EU supplies.

narubi

Yes, all turnover is just from Google Ireland. There is no reason for me to register for VAT if I don't have to, as it would give me no advantage in doing so because the only earnings are Google Adsense payments from online advertisement. I don't have to buy any goods or something. Thanks.

coolpinsky

OK - many information here
I have another question and the same 'problems' like you guys

I just want to register business cos of Adsense income. And here is my question : how can I call this thing ? Google calls us a PUBLISHERS and it make sens for me. Why some people say that it is an Internet Advertising Business ??
I think it is the same story like you have a Newspaper or a Magazine - you are a publisher then, and you have money from Adds ... Am I right ?

Peterdalkey

I assume you are talking about the description of the business, so I would just put "Online publishing and advertising" QED!

coolpinsky

I know what you mean - but I do not do advertising really. I create content on internet and that's what I do.
I think it is the same as Printed Magazines or TV - they make some content and sell some time for advertisement right ?
And nobody wouldn't call TV station an Advertising Company. And I think Adsense publishing is exactly the same just smaller scale. Am I right ?

Peterdalkey

Read the note referring to the information required and you will get the idea. Too little and expect a request for more information and a delay to your application.