Welcome to WebmasterWorld Guest from

Forum Moderators: LifeinAsia

Message Too Old, No Replies

Value Added Tax Questions

Understanding Tax Jurisdictions for the UK in regards to PPC

11:05 am on May 28, 2004 (gmt 0)

New User

10+ Year Member

joined:Feb 25, 2004
votes: 0

I know this may have been covered before to some degree but I am after a definitive answer to this situation and I wonder if the expertise here can give me the nod:

Whats the situation regarding VAT if you have a search site in the UK with an advertising feed from a global company who's billing address is in Dublin.Their advertisers are obviously made up of many sites and companies based in the UK so my site displays their results to UK and global users.So in other words when I invoice for my revenue share I am instructed not to put VAT on it but do I have to make sure I do anything else?(yes I am new to this).Where or how does any VAT get paid for the service?

My accountant says I need to get a statement from the PPC co. as to what they have in place regarding VAT so that when he does my accounts, all is in order.

Also if I have used Google AdWords to get traffic to my site to then click on advertisors results what is the situation then.I note that the invoice from Google to me states that: "VAT is reverse charged to recipient of service in accordance with....etc " whatever that means.Should I know or be doing something else here?

The VAT office called me recently(as I am newly registered) and asked me to define my business activity.Which I did in so many words, but I sensed his eyes were glazing over so I have to write a letter.Any tips appreciated.

It would be very grateful to get the correct low down from some of the experienced people here so that I do it right and I am able to put my mind at rest.

Many thanks

9:46 am on June 1, 2004 (gmt 0)

Senior Member

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month

joined:Oct 1, 2002
votes: 2

shina, Welcome to WebmasterWorld.

I think the first thing we need to know to even start to answer your question is how much you think you will make this year. Will it be over 56K?

>asked me to define my business activity
I hope you answered Internet Consultancy :)

I suspect you need to be registered for VAT, and charge VAT to most of your clients.

This is really something you and your accountant need to work out, but if you want to post a lot of details we might be able to give you a few "informal pointers" as to what questions you need to discuss with your accountant.

9:53 am on June 1, 2004 (gmt 0)

Full Member

10+ Year Member

joined:May 30, 2003
votes: 0

Isn't it:

If the value of your taxable supplies in the past 12 months or less has exceeded the current VAT registration threshold of 58,000, or the value of your taxable supplies in the next 30 days alone is expected to exceed this threshold

rather than actual profit?


Join The Conversation

Moderators and Top Contributors

Hot Threads This Week

Featured Threads

Free SEO Tools

Hire Expert Members