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Using local currency
tbear

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3901082 posted 7:16 pm on Apr 26, 2009 (gmt 0)

A couple of weeks ago Adsense offered me the option of using local currency (instead of dollars) for tracking earnings. I opted to stick with dollars.
Today I was offered an apparemtly singular option to opt for local currency (euros), without thinking too much I accepted, there didn't seem to be another option.
I feel like I've been conned!
I'm beginning to think differently about Google's motives......

 

Lame_Wolf

WebmasterWorld Senior Member lame_wolf us a WebmasterWorld Top Contributor of All Time 5+ Year Member



 
Msg#: 3901082 posted 8:23 pm on Apr 26, 2009 (gmt 0)

I feel like I've been conned!

Why ?

signor_john



 
Msg#: 3901082 posted 8:29 pm on Apr 26, 2009 (gmt 0)

Gee, it wasn't that long ago that AdSense publishers outside the U.S. were begging for payments in local currency. I guess there's no way to make everyone happy!

Bddmed

5+ Year Member



 
Msg#: 3901082 posted 8:53 pm on Apr 26, 2009 (gmt 0)

I'm offered (forced) to make this change too. The problem is not being paid in . The problem is it's not clear how the tax authorities will deal with this. With accepting the new payment you also have to agree that Google Ireland is the new contract partner.

I'm based in NL and most advertisers come from NL also. The tax authorities might decide that Google's role is only to shift money from NL to Ireland and back to NL again in which case VAT would be applicable. Google won't pay VAT so that leaves us with a problem.

Of course we claim doing business with Google and not with any particular advertiser but as long it's not clear how this situation is handled by the tax authorities I don't want to change either.

This is *not* only about changing currency!

dolcevita

5+ Year Member



 
Msg#: 3901082 posted 9:38 pm on Apr 26, 2009 (gmt 0)

I have asked almost same question here:

[webmasterworld.com...]

without any response.

I'm wonder of we are now with this redirection forced (on direct or indirect way) to switch to local currency or not?

There is still option to accept or not with return to Adsense account.
My question if we chose "No, I do not accept the above Terms and Conditions. - Return to my Adsense account" can we then later still have option to switch or it is definitive? And should such a decision have any other negative consequence for us?

From other side om Adsense blog state:
[adsense.blogspot.com...]

"We encourage you to update your account to local currency reports soon, as we may require this change in the future"

Does this mean that each publisher from Europe should be sooner or later forced to update account to local currency and changed contract from Google Inc. to Google Ireland Limited with all other changes?

johnnie

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3901082 posted 9:40 pm on Apr 26, 2009 (gmt 0)

There's no VAT problem; google is the VAT-obligatory party in this case. Just be happy you get paid in euros; it's a bit more stable if you know what I mean.

Bddmed

5+ Year Member



 
Msg#: 3901082 posted 9:54 pm on Apr 26, 2009 (gmt 0)

johnnie, If you're running Adsense as a business (not as private person), I'd suggest you get some serious consultancy. Google won't pay VAT.

johnnie

WebmasterWorld Senior Member 10+ Year Member



 
Msg#: 3901082 posted 10:30 pm on Apr 26, 2009 (gmt 0)

Bddmed, we've had a massive thread on this issue before. For cross-country digital advertising, there is an EU-regulation in which the place of business is defined as the place of the BUYER. This means that IRISH VAT applies, which Google has to pay and subsequently deduct accordingly.

It's much like adwords, where YOU pay VAT and deduct afterwards.

Google can deny all they want, they are required by law to pay Irish VAT. They don't lose any money on it though, since VAT is treated as a business pre-taxation.

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