EU Adwords Avertiser's VAT hike

[shakers]

Just received a notification from Google that wef 22 Jan all EU advertisers will be charged VAT at 19% because they will be charged from Google's new Dublin base.

This only applies to people who have not suppled Google with a VAT number.

[wackybrit]

Argh. Never mind, my Google US account is denominated in dollars.. and the $1.85 to £1 conversion means that 5 US cents is about 2.8 pence.. and even with, say, a 20% VAT, 5 US cents turns out at 3.4 pence. Still a better bargain than 5 pence plus 19%, which would be 6p!

So, if you're not VAT registered, and want to save money, ditch the Adwords UK account, and use a US denominated one, you'll save, and the credit card commission on the foreign currency is pretty tiny.

US + VAT is still cheaper than UK + VAT, and I can still target the UK from that other account :-)

[Sowe]

And how can I get a US account? I need to have a billing address there to get an account. Any ideas?

[spud01]

Yea, I got the same email too.

So this new VAT hike only affects ppl that open a new Google Ads account on Jan 22nd or have not provided the AdWord system you VAT number by that time.

Those of us that have already provided the VAT details will continue to pay the normal VAT of 17.5%

Right?

[Sowe]

Those of us that have already provided the VAT details will continue to pay the normal VAT of 17.5%

Right?

That's right (the amount (17.5%) depends on your country).

But why do I have this in my admin area:
------
Google will assess at the new 19% Irish VAT rate starting January 9th, 2004.
------

Why would it start for me on January 9th, while for you on January 22nd?

[spud01]

I can't see such a note in my account.

I did read up though the google FAQ - [adwords.google.com...] and it says the following.

Online Advertisers: Non-Irish EU Billing Addresses
If you are an online AdWords advertiser with a non-Irish EU billing address, you will be charged the Irish VAT rate of 19% as of January the 22nd 2004. If, however, you have a valid VAT number and have already entered it into the AdWords system, you will continue to self-assess your VAT charges and Google will not add VAT to your costs.

Have you checked you have a valid VAT number in your account?

[wackybrit]

Back in the day, you could only get accounts from adwords.google.com, and not the UK site. I started using Adwords Select when it first came out, which then turned into regular Adwords, and had a US account. I then signed up for a UK account for good measure.

But I still primarily use the dollar denominated US account, because of the preferential pricing, even though VAT is still applied to what I do there. This is because I am not VAT registered.

I don't think you need a US billing address to sign up for adwords.google.com.. at least, I didn't, but that was quite some time ago :-)

Long may it last, I think my 5 cent bids get just as good positioning as my 5p bids, and they're at least 50% cheaper. ;-)

[Sowe]

@ spud01
They have changed it yesterday in my admin to "VAT rate starting January 22nd, 2004" just after this post. Maybe just coincidence.

@ wackybrit
I've also signed up on the "adwords.google.com" but nowadays there's no choice, if your billing address is in the EU you can only get an EU account. Yaeh, this sucks. Google isn't cheap, and the low dollar, paying clicks in euro + the VAT makes it really hard.
Keep your US account as long as you can :-)

[killroy]

so, when will they pas son VAT to adSesne publishers? According to my accountant, I should REALLY be charging VAT, which google should collect from the advertsier, at least form those from my country of origin...

(What a mess)

SN

[Michael Anthony]

wackybrit - I see an opportunity here for you to sell additional campaigns on your U.S. account?

[spud01]

killroy,

Are u suggesting that for every $100 we earn on adsense where are going to get charged VAT as well.

That really pisses me off!

I Pay VAT on everthing, like every1 in the UK, from food to even my own socks.