Taxes in your country

Taxes or Value Added Tax (VAT) might be applicable to your business, depending on its location. Read on to see what applies in your country. If you'd like to see information for another country, click the drop-down menu above.

Value Added Tax (VAT) in China

VAT (value added tax) is a tax on supplied goods or services. Google Advertising (Shanghai) AdWords users with billing addresses in China are subject to VAT.

As of 1 January 2012, Google Advertising (Shanghai) became a VAT payer under the Shanghai VAT Pilot Programme. As of 1 April 2012, Google Advertising (Shanghai) has charged and collected VAT on all advertising services that it provides, and has only issued VAT Fapiaos to advertisers. The VAT amount is reflected in the VAT Fapiao issued to you.

Google Advertising (Shanghai) cannot provide tax advice. Please consult your tax advisor or tax consultant if you have questions about how the Shanghai VAT Pilot Programme affects your business and tax obligations, to determine your VAT status, or to determine what information your VAT Fapiao should contain.

VAT charges

Under the Shanghai VAT pilot programme, Google Advertising (Shanghai) is required to charge 6% VAT for all clients, even if they aren’t based in Shanghai. There are no exceptions.

For customers other than manual payments customers, your invoices reflect the VAT charged on your invoice balance at a 6% rate.

For customers using manual payments, Google deducts 6% VAT from your prepayment amount. For example, if you prepay 1,000 CNY, the amount credited to your account balance will be 943.40 CNY, after deducting 56.60 CNY for VAT.

About Special VAT Fapiaos

Google Advertising (Shanghai) issues Special VAT Fapiaos to customers that are General VAT payers. A Special VAT Fapiao is proof of tax payment that may allow you to claim VAT input credits, if you’re properly registered with the tax authorities as a General VAT payer.

In order to issue the Special VAT Fapiao, Google Advertising (Shanghai) needs you to provide a scanned copy of your tax registration certificate (the first page and the following page including the VAT tax registration status). We accept the following types of files for your scanned tax registration certificate: PNG, GIF, JPEG, and TIFF. The file must be no larger than 5 MB.

In addition, the following information that you provide will be printed on your Special VAT Fapiao, and must exactly match your tax registration certificate, if it's listed there:

  • Business name
  • VAT tax registration status (General VAT payer)
  • Tax registration ID
  • Registered address
  • Registered telephone number
  • Bank account details (bank name, account number)

If you want to have your Special VAT Fapiao delivered to an address other than your registered address, you can provide a separate mailing address by going to your Billing profile page and clicking Edit.

If the information that you provide doesn’t match your tax registration certificate, or if your scanned tax registration certificate is invalid, corrupted, or unreadable, Google Advertising (Shanghai) won’t be able to issue your Special VAT Fapiao. If this happens, we’ll email you and ask you to correct the missing or incorrect information. Once you make the necessary corrections, we’ll then be able to issue you with the Special VAT Fapiaos.

About General VAT Fapiaos

Google Advertising (Shanghai) issues General VAT Fapiaos to customers that are registered as small-scale VAT payers, non-VAT payers or individuals. A General VAT Fapiao is official proof of tax payment, but it cannot be used to claim VAT input credits. The following information that you provide will be printed on your General VAT Fapiao:

  • Business name
  • VAT tax registration status
  • Tax registration ID (except individuals)
  • Mailing address
  • Telephone number

Opting out of VAT Fapiaos

If you don’t want to get VAT Fapiaos for your advertising activity, you can opt out by selecting the “Do not send me tax invoices” option in your billing profile. Until you change this option, Google Advertising (Shanghai) won’t attempt to deliver VAT Fapiaos to you.

However, bear in mind that if you opt out of getting VAT Fapiaos, Google Advertising (Shanghai) is still required to charge 6% VAT for all clients and report VAT activity to the appropriate tax authorities.

Value Added Tax (VAT) and AdWords status

When you set up your account, you'll be asked whether your tax status is business or personal. This, along with the location of your business, determines whether we'll charge you VAT along with your AdWords costs.

Here's a look at business and personal status, and what you can expect, depending on the one that you pick for your AdWords account. (If you're not sure whether you should choose business or personal, please contact your local tax office for advice.)

Business status

Choosing this status means that you'd like to see an economic benefit from your advertising, such as increased revenue, sales or signups. Most advertisers – including affiliates, sole traders, self-employed merchants, partnerships and others – use AdWords for business purposes.

  • You'll be asked to provide your VAT ID.
  • We don't add VAT charges to your account.
  • You'll be responsible for self-assessing and paying VAT at your EU member state's local rate (in accordance with Article 44 of EU Council Directive 2006/112/EC).

Personal status

Choosing this status means that you're not seeking any economic gain from your advertising.

  • Your account will automatically be subject to VAT charges at the current Irish rate, as required by Irish legislation. (Your AdWords accounts is served by Google Ireland.)
    • If you're on manual payments, we'll subtract VAT costs from your balance before it is depleted.
    • If you're on automatic payments, we'll add VAT costs to your AdWords costs before you're charged.
  • Your website will be reviewed by an AdWords specialist. We reserve the right to change your tax status to "business" if we find that you're using your account for business purposes.

Google can't give advice about VAT. So if you have a question about VAT registration, contact your tax adviser or revenue commissioner.

Changing your VAT information

If you originally selected "personal" as your status and need to change it, contact us with your business details and VAT ID. We'll review your account to make sure that it's used for economic gain (for selling or buying). If it is, VAT won't be added to your AdWords charges any longer. You'll also receive a credit for any VAT that's been incorrectly paid.

You can also change the VAT ID yourself. Click the link below to see how.

Change your VAT ID
  1. Sign in to your AdWords account at http://adwords.google.co.uk.
  2. Click the gear icon and choose Billing, and then click the Billing profile link on the side of the page.
  3. Click edit next to Business information.
  4. Next to "Do you have a VAT ID?", select Yes.
  5. Enter your VAT ID.
  6. Click Save.

A common mistake is made when advertisers enter their tax number instead of their VAT registration number. The two numbers are different. VAT registration numbers start with a country-specific ID. This is followed by a maximum of 12 digits (numbers or letters). Visit the European Commission's website if you'd like to check that your VAT registration number is valid.

Self-assess VAT

If you're using your account for business purposes and you weren't charged VAT on your AdWords costs, you might be required to self-assess VAT at your member state's current VAT rate. Please contact your local tax office for advice.

Invoices legally valid

The invoices that you print from your AdWords account are historical invoices. They show your payment requests (that is, you'll find a line item in the "Record of Costs and VAT" section of your invoice whenever we initiated a charge or you made a payment to Google).  If applicable, invoices also show VAT that we charged you on those payments in a given period.

Invoices are legally valid because they include our VAT ID and yours – this means that they'll be accepted by your local tax authorities. Your invoice also includes a second table called "Record of payments received", which shows all successful payments in a given month. This table is for your reference.

Concerned that these invoices aren't legally valid without a stamp or original signature? Don't worry! Our invoices are accepted by various tax authorities as valid VAT invoices, with VAT deductions included.

If you have questions, contact your local legislature or tax adviser.

Certificates of tax residency

The certificates of residency for 2013 and 2012 can be downloaded as a .pdf file from this article. To download the certificates, click the applicable link below.

If you need older versions of the certificate, please contact AdWords support.

The certificate of residency provided by Google is issued by the Irish tax authority in a electronic form and in English. The certificate in this form is a valid document which is respected by the Polish tax authority.

Value Added Tax (VAT)

All AdWords accounts in Ireland are subject to Value Added Tax (VAT) at the Irish rate – a rate that can change at the Irish government's discretion.

Here's a look at what you can expect if you're in Ireland:

  • Whether you select "Business" or "Personal" as your tax status, you'll always be  subject to VAT charges at the current Irish rate, as required by Irish legislation. (Your account is served by Google Ireland.)
    • If you're on manual payments, we'll subtract VAT costs from your balance before it is depleted.
    • If you're using your account for business purposes but are VAT13b exempt, please indicate this by selecting the box under "Do you have a VAT ID". (You can get here by going to the gear icon and choosing Billing. Click the Billing profile link, and then the Edit button next to the "Business information" section.) You'll also need to provide your VAT 13b information.
    • If you're on automatic payments, we'll add VAT costs to your AdWords costs before you're charged.

Google can't give advice about VAT. So if you have a question about VAT registration, contact your tax adviser or revenue commissioner.

Changing your VAT information

If you originally selected "personal" as your status and need to change it, contact us with your business details and VAT ID.  We'll review your account to make sure that it's used for economic gain (for selling or buying). If it is, VAT won't be added to your AdWords charges any longer. You'll also receive a credit for any VAT that's been incorrectly paid.

You can also change the VAT ID yourself. Click the link below to see how.

Change your VAT ID

A common mistake is made when advertisers enter their tax number instead of their VAT registration number. The two numbers are different. VAT registration numbers start with a country-specific ID. This is followed by a maximum of 12 digits (numbers or letters). Visit the European Commission's website if you'd like to check that your VAT registration number is valid.

  1. Sign in to your AdWords account at http://adwords.google.co.uk
  2. Click the gear icon and choose Billing, and then click the Billing profile link on the side of the page.
  3. Click edit next to Business information.
  4. Next to "Do you have a VAT ID?", select Yes.
  5. Enter your VAT ID.
  6. Click Save.

Invoices legally valid

The invoices that you print from your AdWords account are historical invoices. They show your payment requests (that is, you'll find a line item in the "Record of Costs and VAT" section of your invoice whenever we initiated a charge or you made a payment to Google).  If applicable, invoices also show VAT that we charged you on those payments in a given period.

Invoices are legally valid because they include our VAT ID and yours – this means that they'll be accepted by your local tax authorities. Your invoice also includes a second table called "Record of payments received", which shows all successful payments in a given month. This table is for your reference.

Concerned that these invoices aren't legally valid without a stamp or original signature? Don't worry! Our invoices are accepted by various tax authorities as valid VAT invoices, with VAT deductions included.

If you have questions, contact your local legislature or tax adviser.

Value Added Tax (VAT) and AdWords status

Your account is serviced by Google Ireland Ltd., but Google can't charge VAT if your billing address is in a country that's not part of the European Union.

Check with your local tax authority to see if you're required to self-assess VAT in your country. If that's the case, you'll need to do this with the help of your tax adviser or local tax authority. Google can't advise you.

Self-assess VAT

If you weren't charged VAT on your AdWords costs, then you might be required to self-assess VAT. Please contact your local tax office for advice.

Invoices legally valid

The invoices that you print from your AdWords account are historical invoices. They show your payment requests (that is, you'll find a line item in the "Record of Costs and VAT" section of your invoice whenever we initiated a charge or you made a payment to Google. 

Invoices are legally valid because they include our VAT ID – this means that they'll be accepted by your local tax authorities. Your invoice also includes a second table called "Record of payments received", which shows all successful payments in a given month. This table is for your reference.

Concerned that these invoices aren't legally valid without a stamp or original signature? Don't worry! Our invoices are accepted by various tax authorities as valid VAT invoices, with VAT deductions included.

If you have questions, contact your local legislature or tax adviser.

Advertisers in North America

If you're an advertiser in North America and you claim business income from your AdWords advertising, you'll need to provide Google's Tax Identification Number (TIN) when filing your taxes. Here's our information:

Google Inc.
1600 Amphitheatre Pkwy
Mountain View, CA 94043
Taxpayer Identification Number (TIN) 77-0493581

Google Asia Pacific, Inc.

Because your AdWords business contract is registered with Google Asia Pacific, Inc., local taxes aren't applied to your AdWords activity. These taxes won't be shown on your invoices.

Taxes in India

For invoices dated on or after 1 July 2012, service tax rate for advertising services supplied by Google India Private Limited is 0%. Education Cess, Secondary and Higher Education Cess - which are calculated as a percentage of service tax - will also not be charged starting on this date.

Previously, the rate was 12.36%. But this changed because of updates to Indian tax regulations.

For more information, you can refer to the tax exemption details (negative list) found in the Finance Act, 2012 (Clause 143). The 17 services that comprise the negative list can be found at Section 66D, with sale of advertising space or time slots listed under (G).

Bear in mind that Google can’t advise you on tax matters. Please contact your tax adviser for any questions about this change.

About Tax Deducted at the Source (TDS)

In May 2010, the Central Board of Direct Taxes announced that TDS certificates are required every quarter, rather than issuing certificates annually. (More information can be found on the Income Tax Department of India website.) This change is effective starting the 2010-11 fiscal year.

Certificates for quarters ending in June, September and March need to be issued by 30th July, 30th October, January 30th and May 15th, respectively.

No TDS certificates for the previous financial year will be accepted if sent after 30th April of the following financial year. For example, all certificates for fiscal year 2010-11 should be sent no later than 30 April 2011.

Sending Tax Deducted at the Source (TDS) certificate

There are two ways to send us the TDS certificate:

  1. You can send an electronically signed TDS certificate to us by email. Once the credit amount has been approved, it'll be added to your account.

  2. You can send a signed hard copy of your TDS certificate, along with a cover letter that has your 10-digit customer ID, to the following address:
    Attn: Google Finance Dept.
    B.M.S.I. Pvt. Ltd. (Arvato India),
    15th Floor, Building No. 8, Tower C
    Infinity Towers, DLF Cyber City, DLF Ph – 2
    Gurgaon – 122002, Haryana. India.

    Once you've sent the documents, contact us by email with the following details to get the credit:
    1. A digital copy of the TDS certificate (either electronically signed or a PDF scan of signed TDS certificate)
    2. Courier delivery receipt details

Google's Permanent Account Number (PAN) is AACCG0527D and the registered address on the TDS Certificate should be:

Google India Pvt. Ltd.
No.3, RMZ Infinity, Tower E,
Old Madras Road, 4th & 5th Floor,
Bangalore – 560 016

How much TDS

The current rate of TDS for advertising-related payments to Google India Private Limited is 2% (including surcharge and education cess). However, the rate of TDS is subject to change according to government regulations. Note: Google AdWords cannot advise you on tax matters. If you have more questions regarding TDS or other tax matters, please check with a tax consultant.

Taxes in Russia

All AdWords advertisers with a Russian billing address are charged 18% Value Added Tax (VAT) for all their AdWords costs, with no exceptions.

Here's a look at what you can expect if you're in the Russian Federation:

  • Whether you select "Business", “Individual entrepreneur” or "Personal" as your tax status, you'll always be subject to VAT charges at the current Russian rate, as required by Russian legislation. (Your account is served by Google Russia.)
  • You’ll see the VAT charges by clicking the gear icon and choosing Billing. VAT is charged on actual usage.

VAT on USN

According to tax regulations in Russia, if you’re on USN, you’re not supposed to pay VAT for goods and services that you are selling or buying. However, when you’re buying goods or services from a company operating under the general tax regime, you pay VAT included in the prices of the product or service. Since OOO “Google” is operating under the general tax regime, you’ll also pay VAT for AdWords.

Bear in mind that Google can't give advice about VAT. So if you have a question about VAT registration, contact your tax advisor or revenue commissioner.

Changing your tax status

When you sign up for AdWords, you’ll need to choose a tax status from either Personal, Individual entrepreneur or Business. Once you make your choice, it’s not possible to switch to a different status. For example, if you chose Personal, you can’t change the status to Business instead.

If you need to change your tax status, please close your existing AdWords account and create a new account with your preferred status. Use a different email address to create this new account. Or, if you'd like to use the same email address, you'll need to change it in your existing AdWords account before closing it out.

Changing your VAT information

To check the company name or tax IDs (INN and KPP) that appear on your monthly invoices, click the gear icon and choose Billing, then go to the Billing profile section.

Update your KPP number

If your KPP number has changed, you can edit it in your account. To update your KPP, please follow the steps below:

  1. Sign in to your account at https://adwords.google.co.uk.
  2. Click the gear icon and choose Billing. Go to the Billing profile section.
  3. Click Edit and update the KPP. Click Save when you’re done.

Note

We can change your KPP if your INN stays the same. You may not change your tax IDs and company name from those of one registered company to another. If you'd like your AdWords account to be for a different registered company (with a different INN), then please create another account.

Change your company name

If your company name has changed, contact us. In order to update this information, we need a scanned copy of your tax certificate stating your tax IDs and registered company name. Once we receive and verify your tax certificate, we'll change the company name that appears in your AdWords account and on your monthly invoices. We'll let you know when we've done so.

Note

We can only change your KPP or company name if your INN stays the same. You may not change your tax IDs and company name from those of one registered company to another. If you would like your AdWords account to be for a different registered company (with a different INN), please create another account.

Correct your INN

If your AdWords account has an incorrect INN (tax ID), it can only be changed if it was mistyped when creating your AdWords account. Contact us and provide a scanned copy of your tax certificate stating your tax IDs and registered company name. Once we receive and verify your tax certificate, we'll change the INN that appears in your AdWords account and on your monthly invoices.

If you'd like your AdWords account to be for a different registered company (with a different INN), then please create another account.

Change your legal or mailing addresses

If either your legal address or mailing address have changed, here’s how to update them:

  1. Sign in to your account at https://adwords.google.co.uk.
  2. Click the gear icon and choose Billing.
  3. To update your legal address, go to the Billing profile section and then make your changes. Click Save when you’re done.
  4. To update your mailing address, go to the Billing settings section and make your changes. Click Save when you’re done.

Calculating VAT

You can see your VAT charges by clicking the gear icon and choosing Billing

How VAT is calculated

VAT is charged based on the value of your accrued clicks and impressions.

Usage + VAT = Payment amount

When VAT is charged

VAT may be charged:

  • Once a payment has been completely spent in the account, or
  • At the end of the month if a payment is only partially spent

Example

  • Say your AdWords account receives a payment on 10 June 10th for RUB 100.
  • Usage accrues each day until that payment of RUB 100 is completely spent on 25 June.
  • A VAT line item appears on 25 June showing the VAT charge taken from the RUB 100 payment.

Example

  • Say your AdWords account receives a payment on 25 June for RUB 100.
  • By the end of the month (30 June) RUB 50 of the payment has been spent. A VAT line item appears on 30 June showing the VAT charge taken on the RUB 50 usage.
  • The remaining balance of that payment is spend by 3 July. A VAT line item appears on 3 July showing the VAT charge taken on the remaining RUB 50.

Note: VAT charges may cover the taxed amount for more than one payment if more than one payment is completely spent on a single day.

VAT on promotional credit or adjustments

If you earned a reward from a promotional offer or any other type of credit adjustment, VAT will automatically be applied to the usage paid by this credit. This will then be refunded completely once the total credit is spent, or refunded partially at the end of the same month if the credit is only partially spent.

If you have any trouble understanding VAT charges, please contact us.

VAT and "Current balance"

The "Transaction history" page has two sections stating the balance of your account:

  1. The "Current balance" section above the table: Shows your balance that can be fully spent on future advertising activity.
    • The field "Credit remaining" shows the amount left for advertising activity and an estimated amount of future VAT charges. Check this field to estimate the amount of money left in your account.
  2. The "Balance" column in the transaction history table: Shows your account balance (calculated by subtracting the amount in the "Credits" column from the amount in the "Debits" column) without including any estimated future VAT charges on unused payment amounts.

The bids and budgets you set on the "Campaigns" tab don’t include VAT.

Note

Oh, dear. We weren't able to determine your billing country.

Please click the drop-down menu above to see tax information for your country. You can also use this menu to learn about tax information in other countries.

If you don't see your country listed, that means we don't have tax information for that country. Please contact your local tax authority for this information.