Value Added Tax GoogleAdSense Invoice
July 5, 2021 | 35,00 EUR | answered by Steuerberater Knut Christiansen
Hello everyone,
I am a self-employed insurance broker and therefore do not fall under the sales tax obligation due to my commission income.
I am currently running advertisements through Google AdSense and receive an invoice from Google Ireland LTD without VAT. This is to be settled by entrepreneurs under the reverse charge procedure.
But what about the few entrepreneurs like me who do not have to submit VAT returns and also do not have a VAT ID?
Important: I do not generate direct income through Google, the advertising is only for establishing contact. Any contracts that may result from this have nothing to do with Google. So I am only concerned with the correct explanation of how the (non?) payable VAT from the Google invoices should be handled.
Good day,
I am happy to answer your question as part of an initial consultation.
As a recipient of a service from an EU country, you are liable for VAT in Germany, as the place of supply has shifted to Germany according to Section 3a (2) UStG (location of the recipient of the service). Therefore, you would need to enter the net amount of these services in line 99 of your VAT annual return (Other services according to Section 3a (2) UStG) and pay the corresponding VAT to the tax office one month after submitting the return. The paid VAT will then be considered a business expense for you, as you are not entitled to input tax deduction.
I hope this answers your question, if not, please do not hesitate to contact me again.
Kind regards,
Knut Christiansen
Tax consultant
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