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) and AdWords Express 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 Express costs.

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

If you choose "business" as your status, you can expect the following:

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

If you choose "personal" as your status, you can expect the following:

  • Your account will automatically be subject to VAT charges at the current Irish rate, as required by Irish legislation. (Your AdWords Express accounts is served by Google Ireland.)
    • If you're on manual payments, we'll subtract VAT costs from each manual payment before the funds are added to your account.
    • If you're on automatic payments, we'll add VAT costs to your AdWords Express costs before you're charged.
  • Your website will be reviewed by an AdWords Express 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 advisor 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 Express charges any longer. You'll also receive acredit 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 Express account at http://adwords.google.com/express/ New Window.
  2. At the top right corner, click the gear icon and select Billing from the dropdown menu.
  3. Click Billing settings, then click Billing profile on the left-hand side of the page.
  4. Click Edit next to Business information.
  5. Next to "Do you have a VAT ID?", select Yes.
  6. Enter your VAT ID.
  7. 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 you account for business purposes and you weren't charged VAT on your AdWords Express 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 Express 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 we charged you on those payments in a given period.

Invoices are legally valid because they include our VAT ID and yours -- this means they'll be accepted by your local tax authorities. You 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 advisor.

Value Added Tax (VAT)

All AdWords Express 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 each manual payment before the funds are added to your account.
    • If you're using your account for business purposes but are VAT13b exempt, please indicate this by checking the box under "Do you have a VAT ID." (You can get here by going to the Billing tab, then the Billing profile link, and then the Edit button next to "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 Express costs before you're charged.

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 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 Express charges any longer. You'll also receive acredit 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 Express account at http://adwords.google.com/express/ New Window.
  2. At the top right corner, click the gear icon and select Billing from the dropdown menu.
  3. Click Billing settings, then click Billing profile on the left-hand side of the page.
  4. Click Edit next to Business information.
  5. Next to "Do you have a VAT ID?", select Yes.
  6. Enter your VAT ID.
  7. 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.

Invoices legally valid

The invoices that you print from your AdWords Express 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 we charged you on those payments in a given period.

Invoices are legally valid because they include our VAT ID and yours -- this means they'll be accepted by your local tax authorities. You 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 advisor.

Advertisers in North America

If you're an advertiser in North America and you claim business income from your AdWords Express 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 Express business contract is registered with Google Asia Pacific, Inc., local taxes aren't applied to your AdWords Express activity. These taxes won't be shown on your invoices.