Adwords / VAT Self Assesment

[keithlunt]

I've been told by Google that I class as using Adwords for business purposes (promoting a customer's website). Google are registered for VAT in Ireland and because I use the account for business purposes they have said I must self assess the VAT. As such in future they will not be charging me VAT - I have to handle that myself.

But as my turnover is significantly under the £64k threshold I am not VAT registered and have told them as much, but they are still insisting I self assess the VAT.

Has anyone any knowledge on how to 'self assess VAT' in the UK? Is there such a thing? The adverts are currently off, but the customer will request them to be switched on again soon.

[tkessex]

I may have misunderstood the problem, but surely you can only self-assess on VAT if you are registered to declare it, and if you are being charged it in the first place?

Just to clarify, are you saying that Google are not charging on VAT on the amount you pay for using Adwords?

[keithlunt]

Yes, I've told Google that I do not have a VAT number and yes they are not going to be charging me Irish VAT any longer.

This is their new policy and being applied to everyone who uses Google adwords for 'business purposes'. Even if you are only promoting a single affiliate scheme then you are included. The same is happening to another guy that I know.

It seems to be something with an EU directive. Because they are registered for VAT in Ireland (which is a higher rate than the UK) and I am based in the UK, their interpretation of the EU directive is that this is what should be done.

But even the Google help seems to say that they should only do this if I have provided a VAT number, which I haven't.