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Vat on UK Google Adsense Earnings

Do I need to pay VAT on Adsense earnings in the UK?

     
6:47 pm on Jan 30, 2018 (gmt 0)

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I am about to go VAT registered in the UK. Part of my income is from Google Adsense.

I have been trying to figure out if this will affect my Adsense account in any way but am not sure, there does not seem to be much good information about it.

I'm going to register for VAT due to getting close to the turnover limit and I am looking for an accountant to help him with it. But I don't know if there is anything I need to do with Adsense...

Do I need to notify Google that I am VAT registered somehow?

Does anyone have an experience of running Adsense while being vat registered in UK?

Any help greatly appreciated.
8:07 pm on Jan 30, 2018 (gmt 0)

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As far as I'm aware, per the reverse charge procedure, Google pays VAT in Ireland, regardless of your own VAT registration. You'll need a business account with AdSense, ideally. I create an invoice for every AdSense payment I receive, listing their VAT number and my own, but I don't actually send these to Google. Then once every quarter I submit these earnings, listed by VAT number, to the tax agency in my country (NL). I'm sure your accountant (or perhaps someone from the UK here) can tell you if you need to report those cross-border EU earnings separately to the HMRC.

Here's another thread on the topic: Invoices & VAT ID [webmasterworld.com]
8:26 pm on Jan 30, 2018 (gmt 0)

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Do I need to pay VAT on Adsense earnings in the UK?


No, simply declare the earnings on your tax return.

Do not forget to include any valid expenditures you have for creating, promoting, maintaining and hosting your site.

UK VAT registered since the 70s

Self-employed since the 70s
8:28 am on Jan 31, 2018 (gmt 0)

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Google addresses your question here:
[support.google.com...]
6:45 pm on Feb 1, 2018 (gmt 0)

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Thanks guys, I really appreciate the advice.

@robzilla "You'll need a business account with AdSense, ideally" is there any reason I might need a business account?

@vivalasvegas thanks man, I read that that but its kind of confusing, like most of googles help it always leaves me guessing!

So it seems like I will be fine.

One of the reasons I was concerned is that I get paid out from two Adsense accounts. One is my own and one is a JV that I take payment into my bank for (long story).

I was worried that I I had to give Google my VAT number they might ban me for getting paid from two accounts.

But it seems like I will be ok...

@RedBar that a good run man, I was born in the 70's and I just turned 42, so you've been doing well for a long time :-) its inspiring.
9:46 pm on Feb 1, 2018 (gmt 0)

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@robzilla "You'll need a business account with AdSense, ideally" is there any reason I might need a business account?

It's been a while, so I've looked into this again, and it seems that no, there's no reason [support.google.com] to change account type unless you want payments to be made in name of your company rather than your personal name. Sorry about that, I recall them being stricter about this some years back, leading me to close my personal account and open a business account, but I'm not so sure about that now. They've certainly made it easier to make the switch: just use the contact form to request the change, if you are so inclined.

(That page also notes you don't need to provide your VAT identification number.)
11:00 am on Feb 2, 2018 (gmt 0)

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Good find man, thanks for the help
7:42 pm on July 2, 2018 (gmt 0)

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Hey people.

So I didn't go VAT registered when I first made this post. My income dropped and so I wasn't close enough to the threshold to have to do it.

But now I am right on the threshold and will be bumped over it by next month.

I spoke to the VAT office and they said I would have to give Google my VAT number.

But my adsense account is personal (as opposed to being business) and I can find anywhere to add my VAT number.

Does anyone know if it is possible and/or necessary to add my VAT number to a personal adsense account?

From what I have read from Google I don't think it is possible but the VAT man was pretty adamant.

[support.google.com...]

Thanks
12:04 am on July 3, 2018 (gmt 0)

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You can simply create an invoice to Google from you within your own accounts (not sent to Google). Then pay the VAT on the total Google pay you within your monthly VAT returns. That will keep you right, in that all VAT is being paid.

One way of looking at it is you are providing Google with a service (ad space) in exchange for payment. The responsibility to pay the VAT is your's from the point you become VAT registered. I tend to treat Google just like I would any other "customer" from a bookkeeping point of view.

Mack.
8:19 am on July 3, 2018 (gmt 0)

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I can't find my VAT number anywhere in my business account. They may have asked me to fill out some tax forms many years back, I don't really recall; it may have just been a US tax thing, nothing related to VAT. Anyway, I put my VAT number and Google's on every invoice (which I don't send out), with a "VAT reverse-charged" notice, and then enter Google's VAT number along with my earnings on the VAT filing. Of course your VAT office will tell you otherwise, they'll want everything done by the book, but I don't think it'd really be an issue if Google doesn't have your VAT number. If you want to be sure, though, ask Google to convert your personal account and e-mail them your VAT number.
9:02 am on July 3, 2018 (gmt 0)

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Thanks guys, I will post an update once I have done it.