![]() ![]() VAT between businesses is supposed to be a nul operation: you collect it from your customers on behalf of the government (when appropriate) and give it to the government - it's never yours. Since your "customer" (Google) is located outside Belgium (Ireland), you do not have to collect VAT from them (neither do you have to give it to our government). I'm located in Belgium as well, my accountant has no issue with me not sending them invoices. ![]() If you are starting out with AdSense and only have low income, you would most likely be running under that VAT system. In that case VAT formalities are simplified but you can't apply VAT on your sales and services and can't deduct VAT from your purchases. VAT with the franchise system for small businesses is a simplified system a small business can run under in Belgium if the yearly turnover is less than 5580€/year. VAT applies to the business operation, except if you (the publisher) are running VAT with the franchise system for small businesses. * In that case, the customer (Google) is responsible for paying VAT in its country, if VAT applies on the business operation between Google and you. * The environment is a business to business, your business and Google's * The business operations are between two different countries in the EU * The business operations are services you provide to Google In regard of the VAT, there's several things: You created an invoice and got paid for it, your tax man doesn't care if you really sent it or not. If Google can't show your invoice to their tax authorities it's their problem, not yours as I understand it. It works a little bit backward with Google :-). Sending the invoice only serves you to get paid from your customer (Google) but you are already getting paid even without sending the invoice. VAT is a subject that can give you headaches, right? I'm also in the process of starting my internet business with AdSense.Īs I understand it, you must create an invoice but don't need to send it. If I understand you correctly you are located in Belgium, as I am :-). Please speak to your local tax advisors if you have further questions."Īccording to their information only Irish Adsense providers need to send them invoices (presumably including VAT). In accordance with the terms of your agreement with Google, the services provided are subject to the reverse charge mechanism and so VAT is to be accounted for by the recipient, Google Ireland, per Article 196 of Council Directive 2006/112/EC. In this case, your payments are being made by Google Ireland, a company incorporated under the laws of Ireland. Note the following text available at Google Help: For my case, this isn't restricted to Google alone, although all other transactions do have correct payment notifications with both parties VAT numbers. My accountant told me to print a pro forma invoice matching up to the payment notifications and (of course) using the proper information for 0% VAT notification (which means in my country that I also have to fill in a regular tax declaration showing interior community transactions and VAT numbers where I charged 0%). ![]()
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