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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.
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.
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?