AdWords and VAT?

Do you have to pay it if you are VAT registered?

[qwer]

Hi,
I am interested to know the following:
If you are living in the EU, promoting affiliate programs with AdWords (Google Cash method), and having, say, 10% profit margin, (you pay 100US$ and get 110US$)will you have to pay VAT for AdWords?

I know that, if you are VAT registered, Google will give you a refund on all the VAT that they have collected, but sould you pay it later when declaring your income?

Imagine, that your competitors are, for example, in the USA, where no VAT is charged. Is it possible to compete with them or you should forget about promoting affiliate programs with AdWords, because of -9% profit margin?

[Syzygy]

This should provide you with your answer...

[adwords.google.com...]

Hope that helps...

Syzygy