I have tried to upgrade to the new AdMob version, but I have one doubt:
AdMob now asks me if I am a company or particular. As I am particular, and my residence is on Spain, it says me that TAXes will be charged on my account, but this kind of activities are exent from tax, since the activity is a service that is not provided in Spain. Anyone knows how to avoid this? Before, payments were made from USA, but saying that my residence is on Spain, AdMob informs that now will be done from Ireland.
Could you post exactly what they’ve written about the taxes? Screenshots maybe…?
The origin of the payment should have nothing to do with taxes as long as the company behind it doesn’t change (I hope it doesn’t to some EU admob/google sub-company). And the taxes should be paid by Google because of reverse charge.
For me the link they’ve sent (“upgrade your account”) just doesn’t work.
I think that the company has changed. Now it is Google Ireland (at least for payments in Spain). I have asked that question to a consultant, and the answer is that now, if you are resident in EU, you must be registered into the VIES to avoid retaining the taxes, so you should have a VAT name. So, if you are a particular, the VAT will be deduced from your earnings, and it can be a dangerous situation, because, as Google pays the taxes, it will provide your name for that operation. Something more critical from EU-EU countries than US-EU.
I have EU VAT number and have done some inside-EU sales before, so it’s not a problem.
It complicates accounting though and as you said - EU will now know everything about your transactions, so you have to be careful not to make a mistake in accounting books (for example about the date of the transaction which I did several times with transactions from USA).
I also wonder if we will get less revenue because of that - will they deduct the VAT from our revenue? - if they do, then the eCPM will be simply abysmal and I would move all traffic out of adMob then (I have 30% there right now). Great that they will pay in my own currency though - I lose a lot of money doing the exchange of dollars to my currency.
I’m Spanish resident as well and I didn’t noticed about it, anyway every EU-EU transaction are VAT exempt, so the VAT is not deducted by any part on this transaction, this only would make sense if IN-country operations