Doesn't show GST on my account
(Disclaimer: I am not an accountant, nor do I play one on TV - if you want accurate info, you will have to go and consult some who actually has a piece of paper :))
I think for it to have GST implications your contract will have to change so it is with Google Australia.
If Google US is willing to show you clicks in AUD, thats lovely, but will not have any GST impact.
Think of it this way - at the moment they convert at moment of payment (or close enough). This sounds like they are only suggesting that they will change the moment when they will do that conversion.
However, if they are suggesting that your contract will change to one with Google Australia (and this is what happened with the Euro - people seeing their info in Euros have to agree to have their contract changed to be with Google Ireland) then there *will* be GST implications. As Google AU is in all likelihood doing more than $AUD50K pa (no, really, I hear Google is that big ;)) they will need an ABN and be registered for the GST. If you are also registered for GST then you should receive 'recipient generated tax invoices' from them along with your money, which will probably be 10% higher. As with all such things, in theory, in the long run it is GST neutral.
(This is how I understand it works, but I just pay the BAS bill that my accountant tells me to...)
I hope this happens - I am so sick of money arbitrage!
Can you let us know if you get any further info? :)
My view is that it would be of no benefit. That's assuming they're not converting your earnings on a daily basis.
We're all aware of extreme gyrations in currency throughout a month so I think it largely pointless.
I'll leave mine as is.
What do you mean, Ian?
The OP said
and I took this to mean that we would never see the USD amount as it would be converted with the daily (or hourly) rate, on the fly.
|on a daily per click basis |
(I also wonder if our advertisers would get the same?)
leadegroot is right about the GST - depends on the who pays you - up to a point. The income would have to be split between Australian and non-Australian income (Google Australia won't collect GST on its foreign ads). This gets messy.
Out of curiosity, has Google implied how much advertising is from Australia for your sites? I think a high percentage is possibly why they are asking you about AUD.
The only benefit I see is a much smoother and predictable exchange rate if it is done daily.
No, no - as I understand it (repeats disclaimer about not being an accountant), its irrelevant where the money comes from.
If we have a contract with Google Australia (and we are registered for the GST, yadda yadda) then the money we get from them has the GST on top. Its not relevant where Google gets it from, once it hits .au shores its taxed.
Think about it - if the fruit shop buys some oranges from overseas and some from a local grower, you still see GST for both items. The fruit shop can't go, 'oh, these are *foreign* oranges - theres no GST on these!'.
 Note - none of us currently have a contract with google .AU, so this doesn't apply to the current situation
I'll still leave mine alone until I can perceive some special benefit.
BTW: Heh! heh! Oranges are not subject to GST. No fresh food is! Make it orange juice, it has a manufactured component. Fresh chicken is GST free, BBQ chicken is plus GST.
oh, poo! I forgot about that!
But you're clever. Think of a different industry and substitute in :-P
I'm not clever at all.
Nothing detracts from your POV though.
I just remembered that fact [and other junk] from some firey anti-GST debates of the day in which I had participated.
I consider the GST issue with AdSense to be a non-issue. Don't sweat about it.
Then again I'm a silly old SOB who could care less. Pee'ing off the establishment at my age is now a refined "art form" akin to fishing for trout.
And y'all think I'm joking?
Takes all shades of opinion! And? I have many shades depending upon the issue.
So what are you saying should I or should I not have my adsense stats converted into AUD dollars...
I hate when they folks at adsense do this... I never know whether or not to change the status quo?
Sorry, Elvis - I think the consensus is thats its your decision and you have to decide what is right for you :)
I've long held the view with AdSense the best course is "do nothing" and wait and see what happens.
Sometimes something which "sounds good" turns out to be a bummer. Then again other things after months of trial and usage get a big thumbs up here.