VAT overview

All accounts with European Union (EU) business addresses are subject to Value Added Tax (VAT). If you're in the EU, continue reading to find out how your account is affected.

As part of setting up your billing information, you're asked whether your tax status is business or personal. Your answer, along with the business address you enter in your account, determines whether we charge you VAT along with your costs.

"Business" tax status, with an address outside Ireland

Selecting "business" as your tax status means that you'd like to see an economic benefit from your use of this service. These include affiliates, sole traders, self-employed merchants, partnerships, and others.

If you choose Business and your business address is outside Ireland:

  • You'll be asked to provide your VAT ID.
  • We won't add VAT charges to your account. Instead, you'll be responsible for self-assessing and paying VAT at your EU member state's local rate. This is in accordance with article 21.1(b) of the Sixth Council Directive.

"Personal" tax status, or any advertiser within Ireland

Selecting "personal" as your tax status means that you're not seeking any economic gain from your use of the service.

If you choose Personal, or if you're within Ireland:

  • Your account will automatically be subject to VAT charges at the current Irish rate, as required by Irish legislation. (Accounts with EU business addresses are served by Google Ireland.)
  • We'll add VAT costs to your costs before you're charged.
  • If you're outside Ireland and choose "personal," your business may be reviewed by a specialist. We reserve the right to change your tax status to "business" if we find that you're using your account for business purposes.

Changing your tax status

If you originally selected "personal" but need to change your account status, contact us and provide your business details and VAT ID.

We'll review your account to verify that it's used for economic gain (e.g. for selling or buying). If it is, VAT won't be added to your charges any longer. You'll also receive a credit for any VAT that had been incorrectly paid.