I am in the UK and use Google adwords for my business and am VAT registered. Apparently they are in Ireland. Their invoices do not show VAT on them. When I asked whether VAT was included in their charges they said I have to self-assess. Anyone know what that means - is VAT included or not?
"Your Full Name" wrote
Basically, it means that when you do your VAT Return, you add on the VAT that you didn't pay to Google. But then, at the same time, you might also be able to deduct it, if it's a valid business expense - so it then increases both the "Output VAT" and the "Input VAT" and the overall amount payable stays the same!
"Your Full Name" wrote
Nope. You need to deal with it yourself (as above).
Many thanks, that clears that one up then.
HMRC never explain that well.
The problem lies in that any output tax is dependent on the VAT rules of one country and the input tax is dependent on the input tax of another country.
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