Adwords And Your VAT Return
Do you need to register for VAT?
To decide whether you need to be VAT registered you need to calculate your VATable supplies. For this purpose Adwords expenditure should be added onto your turnover in calculating whether you reach or exceed the threshold for registration.
The current registration threshold is £67,000 for the preceeding 12 months (threshold changed 1 April 2008).
Adsense income and non UK/EC income (eg US, Gibraltar etc commissions) are excluded from this calculation as they are “out of the scope of UK VAT”.
The rest of this article assumes that you are VAT registered. If you have met the threshold or wish to voluntarily register for VAT, we at HRBS would be pleased to help you. For a fixed fee quotation please click here.
