Adwords taxing

Do we need to pay tax in the US for adwords spendings?

[sfatih]

Hi, I am new to adwords and I want to ask if we need to pay tax in the US for adwords spendings.

I am in the US on a student visa and legally it is not allowed for me to be taxed for some income besides the money I get from school. Does anyone have some idea whether having an adwords account with US billing address may cause a legal problem in this case?

(The site I want to advertise is a non-profit site about Turkey, it belongs to my brother living in Turkey but I want to pay a very small budget here, like a dollar a day for advertising it. I am confused :)

[diamondgrl]

You can never be taxed by the US government for spending. You can be taxed for net income. So quite the opposite, the spending can reduce your taxes in that it reduces net income.

But I don't know precisely about your tax liability. My guess is you have some.

[sfatih]

Thank you for the reply. I asked about adwords taxing because I read that European adwords users need to pay VAT for their adwords spendings. So, you say there isn't something like this in the US.

[diamondgrl]

Nope. Just on income.

[exmoorbeast]

The US has sales tax which is the same as UK VAT.

I think veryone residing in the US has to pay sales tax, so if you are living there and spending there you will be treated the same as anyone in the US, regardless if you are a student or not.

Sales tax varies from state to state, for instance NYC is around (and don't quote me on this) 8% whereas neighbouring New Jersey is sales Tax Free.

I am not sure about buying adwords in the US and if that purchase attracts sales tax. Possibly not.

[exmoorbeast]

oh, and if it's a dollar a day we are talking about, you can pretty much assume you will be safe - they wont come after you for that kind of spend.

I would just put your adddress as Turkey and then they definately wont be able to charge you tax.

[larryhatch]

I live in California.
I have never paid a cent in taxes for anything related to the Internet.
No taxes on my dial-up service for example.
There are utility taxes (small) on my phone line,
and of course I pay sales tax on any software or supplies I purchase. - Larry

[sfatih]

Thanks a lot for all the responses. I think it shouldn't be a problem, I'll go ahead with adwords.

I thought about giving my brother's address in Turkey but since I will be charged on my credit card here, I have to give my credit card billing address for verification. Anyway, thanks for the help.

[exmoorbeast]

Thanks Larry

I wondered that because we have a Texan (EV1) ISP who has been charging veryone sales tax for over 2 years. They then wrote to us and said that we didn't have to pay it anymore - I wondered what they were doing charging us in the first place since we were outside Texas. There seems to be some inconsistencies in the US with regard to sales tax. For instance, you can order something online in NYC and not pay tax if it being delivered in the same state - which is crazy when you think about it? If you make that same purchase offline from the smae store in NYC then you hgave to pay tax. How do you explain that?