Facebook Ad Revenue VAT Claim Back?

Dutybelt

Hey guys!

I own a monetized Facebook page and I was wondering if it is possible to claim back the VAT Facebook charges me. I started making money in 2019, so I have to declare that income by October of 2020.

How it works:

- I post videos on my Facebook page and Facebook let's me place ads on those videos

- I get paid monthly for the ad views on those videos

- Facebook pays me every month and deducts the standard 23% VAT rate the amount I am owed. So I never see the VAT to begin with.


I recently registred for income tax (ROS) and I am now wondering if registering for VAT (which I think I have to considering the income threshold) will allow me to reclaim the VAT Facebook charged me in 2019. I know I am re-claim VAT on expenses, which I am planning to but I'm not sure about the VAT they charged me on the income.

They charged me a total of: €9,801.55 in VAT in 2019


Thanks a lot in advance

EDIT: Included a screenshot of one of the monthly invoices for reference

GerardKeating

What does your accountant say?

Congratulations on such a successful new business.
Have you spoken to your accountant about this as as you note you are around the threshold for registration anyway.

I think you missed a step though - vat on your income isn't yours. It is the states.

Your circumstances might be different but practically you would collect this anyway and pass the net of vat on income less vat on purchases to the state.

Gloomtastic!

Well done on getting where you are, a great achievement.

If that’s the sort of money you’re bringing in monthly then you are well over the threshold for VAT. You need to register now and as soon as you receive your VAT no. let Facebook know and then they should pay you the full amount Inc. VAT.

You will then pay the VAT man the money minus any VAT you have incurred to achieve that revenue. Your accounts software should be able to calculate the amount.

You can’t claim VAT until you have registered so forget about trying to recoup previous payments.

antoinolachtnai

Good advice ce above.

I am not that familiar with the facebook setup, but I have clients who have a vaguely similar setup in the electricity industry. (Payment for electricity generation)

A trip to the accountant is in order.

From what I can see you have been invoicing VAT (well Facebook have been invoicing themselves VAT on your behalf).

The VAT line should never really have been on the invoice above if you are not VAT registered.

If you register for VAT, you will most likely receive the VAT, but you will then have to remit it to the ladies and gentlemen of the Revenue Commissioners yourself (though there are opportunities for deductions).

Some sectors where self-invoicing is prevalent have a reverse VAT charge arrangement imposed by the Revenue, so the supplier never actually sees the VAT. Instead, the purchaser puts the VAT on their VAT statement. I don't think that is the case in your sector.

The whole 'self-invoicing' thing makes it all confusing if you are not fairly fluent with VAT

Well done on growing your business to this point.

y0ssar1an22

its looks like you are are over the VAT threshold so should register for VAT.

https://www.revenue.ie/en/vat/vat-registration/who-should-register-for-vat/what-are-the-vat-thresholds.aspx#:~:text=The%20principal%20thresholds%20are%20as,other%20European%20Union%20Member%20States.

silver2020

How are you owed vat?

Do you have a vat number and do you make vat returns to revenue?

I would be at an accountant door today as you may land yourself with a rather large tax bill.