Adsense and Spain

Iva

[joeking]

Any webmasters in Spain who earn money through Adsense?

How do you deal with IVA? Do you need to deduct 16% IVA from all payments received?

[jetteroheller]

No, because You receive the money from Google, an US company.

This tax feaatures are common in all the EU.

[James]

If IVA is Spanish income tax, you would be liable to tax in Spain, simply because it is earned income.

It does not matter where the source is..The fact you make an income from it is enough

[jetteroheller]

If IVA is Spanish income tax

I think IVA translates to

VAT Value add tax
MWST in German

[Mauricio]

With Adsense, you are exporting advertising services to USA and it is not under IVA range.

You must declare your Adsense income to the AEAT (the spanish IRS) regarding the IRPF (Personal income tax).

[joeking]

Many thanks everyone - yes IVA is the Spanish version of value added tax.

So any commission earned from the USA does not need IVA applied to it, but commissions earned from within the EEC will need IVA deducted. Is that correct?

I ask on this forum because I know the replies will be in English and that is my native language :-)

[david_uk]

We pay income tax on our Google earnings to the Inland revenue in the UK. It's purely a source of income.

I suppose if we ever joined the UPS club it would necessary to register the business for VAT, but at that point we'd also be able to pay for an accountant specialising in tax/vat.

So if your earnings don't amount to whatever the VAT threshold in your country is, my guess is that you would simply declare it as income. Obviouly you need to check into this with your local tax office.

If you earn enough to pay VAT, you should have an acountant!

[joeking]

David, with respect, I am asking about Spain - not the UK.

You are confusing the issue and not entirely accurate with your UK information either.

The UK is unique in that businesses under a certain threshold can be exempt from paying VAT. That is not the case in other European countries. Whether you should employ an accountant or not is nothing to do with VAT either.

I am only interested in the situation in Spain. I want to know the basic situation in English because it is much easier to get things clear that way than when dealing with a foreign language. I use the services of an excellent accountant in Spain, but my Spanish isn't perfect and neither is his English.