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Google Adsense VAT account / Invoice Dates

     
10:49 am on Dec 30, 2005 (gmt 0)

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I've only just started with Adsense in the last couple of months. What is the latest score with VAT for UK VAT registered businesses?

I have earnings for October and November which was paid in Decemeber. Let's say I earned 50 for each of those months.

1. What dates to I account for?
Should I put an entry in for 31-Oct-05 50, 30-Nov-05 50, or just 100 for 23-Dec-05 (the processed payment date)

2. Does the 100 include VAT at standard rate or is it zero rated?
Should I enter 85.1 + 14.89 VAT = 100? or 100 zero or exempt rated? Or does Google pay 100 + VAT = 115 into my account?

3. Is there a print out form in the adsense control panel?
This may answer Q1+2! Is there an invoice which I print out? If there is I can't find it.

Ta.

2:39 pm on Jan 4, 2006 (gmt 0)

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Googling for the answer brings me back to this page :(

The adsense help search has zero reference to VAT.

I could ask my accountant be he'll charge me more than I earned from adsense.

Surely there are members here who do their own VAT returns? What's the answers!

Dayo_UK

2:45 pm on Jan 4, 2006 (gmt 0)

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As Google are in the US you dont collect VAT.

Covered in the PDF document at the Customs website:-

[customs.hmrc.gov.uk...]

3:02 pm on Jan 4, 2006 (gmt 0)

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Can't I just get a straight answer rather than be pointed in the direction of a 39 page pdf :-)

The pdf says nothing about the invoice dates.

Do I put an entry in for each month where there were earnings or just one entry on the date in which a payment is processed?

Dayo_UK

3:13 pm on Jan 4, 2006 (gmt 0)

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Sorry Frank - I cant fill in your tax forms for you as I am not VAT regd at the moment so dont really know what form you are filling in - just wanted to confirm to you that no VAT is charged and giving you documentation to verify.

Hopefully someone here can help you.

Cheers

Dayo

12:44 pm on Jan 5, 2006 (gmt 0)

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It's the standard quarterly VAT return.

I'm with Tradedoubler also. What they do is generate an invoice / payment receipt after the target has been reached and the advertisors have settled their account with Tradedoubler. e.g. If all is cleared on 10 Dec 05 then that is the invoice processing date I enter in the accounts.

With adsense there is no such 'receipt'. All I can generate is a monthly report. I must be doing something wrong.

I can't believe that no other businesses are receiving income from adsense and are not being in receipt of somekind of output invoice.

Cheers.

3:46 pm on Jan 5, 2006 (gmt 0)

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Frank,

There is only one answer.

Ask your accountant.

Surely you won't take anything on here as gospel. I'm VAT registered and the accountant handles everything.

FWIW our position is that as Google are US based so no VAT is charged.

5:18 pm on Jan 5, 2006 (gmt 0)

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That would be expensive.

I'd have to explain to him what Google adsense was, he'd investigate, and then charge me for what I could find out just by asking "another business" a couple of simple questions.

Maybe I'll try some of the small business forums elsewhere.

It's hardly rocket science.

10:32 am on Jan 6, 2006 (gmt 0)

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Your contract for Adsense is with Google in the US. They don't pay VAT, and you don't collect VAT. So do not bother with VAT. Having said that, you have to declare the full income in your annual tax declaration (but you can deduct all the cost from it, e.g. hosting, content production, advertising).

Dayo_UK

10:35 am on Jan 6, 2006 (gmt 0)

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Get another accountant then.

My accountant would answer that on the phone in about 5 mins.

Try the Affiliates 4 u forum....

11:11 am on Jan 6, 2006 (gmt 0)

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That would be expensive.

I'd have to explain to him what Google adsense was, he'd investigate, and then charge me for what I could find out just by asking "another business" a couple of simple questions.

Maybe I'll try some of the small business forums elsewhere.

It's hardly rocket science.

If its hardly rocket science, then

a) why do you need to ask

b) why will your accountant charge so much.

At the end of the day are you going to take a forum post as the right accounting practice.

In that case

1. Use the date the money hits the bank account.

2. Zero rated

3. Payment history

But what do I know, best check with an accountant.

11:15 am on Jan 6, 2006 (gmt 0)

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Frank,

>Do I put an entry in for each month where there were earnings or just one
>entry on the date in which a payment is processed?

It depends on whether you have opted into cash accounting or not; the former going by payment date, the latter by the earlier earnings date. If you don't know if you operate on a cash accounting basis, we can't tell you - you'll have to ask your accountant.

However, this is such a straightforward/fundamental question about VAT that your asking it suggests to me that, if you are doing your own VAT returns, either you need some tuition or to go on a course about how VAT operates. If you make mistakes you might get investigated, and then the time and cost involved in asking your accountant will seem trivial.

To confirm other answers, there is no VAT on Adsense income.

With regards a print out, you don't need to raise an invoice for it. To have a record to demonstrate the source of your income it again depends on cash accounting - either your bank statement (for cash accounting) or payment history in your Adsense control panel (non cash accounting) will suffice.

Where do I send the invoice for my consultancy fee?

12:48 pm on Jan 6, 2006 (gmt 0)

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As has already been stated, Adsense income is paid from Google US and as such, is outside the scope of UK VAT.

In other words, your income from Adsense does not form part of your VATable turnover and whilst you have to account for it as income in your income tax return, it is irrelevant when it comes to your VAT return.

You don't need to explain to your accountant what Adsense is etc - just tell him that the income relates to sales made in the US.

3:00 pm on Jan 6, 2006 (gmt 0)

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However, this is such a straightforward/fundamental question about VAT that your asking it suggests to me that, if you are doing your own VAT returns, either you need some tuition or to go on a course about how VAT operates.

Hmm. I've been running businesses for 15 years. 10 as VAT registered LTD Co. I didn't realise my posting makes me look such a 'newbie'.

I think I have the answers now. Clearly no VAT is accountable. As for what date I put an entry in I'll use the date the payment was made. If a VAT or Tax droid does question it at a later stage I'll worry about it then.

Thanks for your replies.

12:36 pm on Jan 7, 2006 (gmt 0)

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Frank wrote:
Hmm. I've been running businesses for 15 years. 10 as VAT registered LTD Co. I didn't realise my posting makes me look such a 'newbie'.

LOL. It was asking "what date do I use" that seemed newbie-ish.

What date have you been using for the last ten years, I wonder? For income, 'date earned' and 'date money received' are often different, so this question has to be resolved from day one. The exceptions are things like retail, where order/delivery/payment all happen at the same time. Though, even in retail the question still has to be resolved for expenditure/suppliers.

1:58 pm on Jan 7, 2006 (gmt 0)

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The date I've used in the past is the date the invoice or receipt is issued.

The reason I queeried adsense was because it's not intuitive as to what report should be printed out for users own accounting information.

The payment history shows:

31-Oct Earnings $#*$!
30-Nov Earnings $xxx
23-Dec Payment $xxx
31-Dec Earnings $xxx

I just wanted to be 100% sure that all I enter in the accounts for the last quarter is the 23-Dec payment and not the individual monthly earnings.

2:39 pm on Jan 7, 2006 (gmt 0)

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Frank wrote:
>The date I've used in the past is the date the invoice or receipt is issued.

In that case, you are not in cash accounting. The Adsense date you should use, therefore, is the "earnings" date. Ignore the "payment" date.

3:24 pm on Jan 7, 2006 (gmt 0)

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So what you are saying is that I have to put an entry in the accounts package for every date I have adsense 'earnings' :

31-Oct Earnings $#*$!
30-Nov Earnings $xxx
31-Dec Earnings $xxx

6:11 pm on Jan 7, 2006 (gmt 0)

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Yes.
8:43 pm on Jan 7, 2006 (gmt 0)

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Cheers.