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robho - 12:50 am on Nov 22, 2003 (gmt 0)
Adwords do already collect VAT (or business VAT number) from all advertisers from EU countries (required under the EU rules that came in on July 1st). But I would have thought that when you sell adspace to Google the customer is outside the EU, so not subject to VAT. The Google office in Dublin may mess this up (inside EU), but even then all they need to do is give you their VAT number (it's a business to business sale where the buying business accounts for the VAT, same as when a business purchases from Adwords).
Appearantly, I may be liable to collect VAT from google who should collect from advertisers from my country, IF people in my country advertise with google and show on my site (which they do).