VAT over adsense earnings

[kidbuu]

Do I have to pay VAT over my adsense earnings? I live in Europe (Netherlands).

[jetteroheller]

No.

You are paid by Google, a company in the USA.

You have not to pay VAT for exports to other countries outsied EU.

[kidbuu]

They pay out from out Dublin I think. Also, what if this ad agency were located in the same country as me. Would VAT account to that?

I'm asking this because I wondered if I only have to pay income tax over the earnings, or that I have the pay an X% of the gross earnings (VAT) before the profits.

[mzanzig]

The contract you have is with Google, Inc. in the US, regardless who actually pays you. Thus, you do not have to pay VAT. And I guess that the accountants at Google would have barked already if VAT would have to be paid.