VAT/Google via AdSense

I earn money via my UK registered Limited company from Google via AdSense. The money is collected on his behalf by an intermediary (Google seems something like a management company). My turnover is now approaching the VAT threshold so I shall need to register for VAT. However, will my sales/services be zero rated or exempt as Google are in Ireland and does the existence of the intermediary company affect things? I just need to know that if these services are zero rated or Exempt, if zero rated, then I believe he needs to be register or apply for exemption from VAT in UK

Hi,

There is a requirement to register for VAT if you are makung taxable supplies in the UK which are above the threshold of £85k. To determine your turnover you need to determine whether you are actually making taxable supplies in the UK.

If you are supplying services then it will depend who and where your customer is.

If your customer is an intermediary and they are based in the UK then this will be a taxable supply to the intermediary.

If your customer is the intermediary and they are based overseas then the supply will be Ouside The Scope Of UK VAT and hence no requirement to register for VAT.

Please see the guidance below:

The place of supply rules for services

Working out whether you need to register

You would only need to apply for an Exemption to registration if you are making zero rated supplies.

If you are making supplies which are Outside the Scope of VAT thern there is no requirement to apply for this.

Thank you.