|
A:
If you are located in the UK, then it's always best to contact
your local HM Revenue & Customs office to double check. And
preferable get an answer in writing. The answer that Adsense publishers
have gotten from HMRC has varied, so it's better to be safe than
sorry.
But the general consensus amongst Adsense publishers (pre 2010)
is that you do not need to pay VAT on your Adsense earnings. Google
did have it's headquarters in the US, and now the Republic of Ireland
for European publishers, and are therefore out of scope for UK VAT.
Google Adsense earnings are classified as 'advertising commission'.
Under UK VAT law, an advertisement service is supplied at the location
of the customer. The customer in this case is Google. And they are
still (early 2010) located outside of the UK. However, since January
2010, you may need to disclose a list of EU sales to HM
Revenue & Customs.
Google has recently converted from reporting in $ to £ for
UK publishers. UK publishers are now dealing with a EU company rather
than a US one. Therefore, the chances for potential liability for
VAT has increased. In the future, it's best to double check throughout
the years that no changes in the law or HMRC policy has occurred.
|
