The billing system of the Silicon Valley giant is not at all easy to understand, so imagine explaining it… but anyway, let's try.
Let's take it one step at a time.
Google Ads Billing: How to Understand How Google Bills You for Your Investments
Google Invoice What does it include?
Google bills on the last day of the current twitter database month and your invoice will be available for download in PDF format within five calendar days of the billing day.
The amount of the Google invoice has the following breakdown:
Advertising spending in current month
VAT
Additional commissions (if applicable in the country in which you are located)
Advertising spending
Google will only include the amount of ad spend you've used on your campaigns in the current month.
VAT
On invoices you will see that VAT appears at 0%. This is because Google has a tax base in Europe, specifically in Ireland, and is subject to intra-community VAT.
This means that VAT is not applied directly to advertising investment, as when you buy/consume any product or service in Spain, you pay VAT directly to the supplier and they settle it, but it will be your obligation to self-assess this amount in the country in which you are located according to its applicable rate. For example, if your tax domicile is in Spain, when you have to present the VAT self-assessment form 303, you will have to declare VAT at 21%, and it is very important that you are registered in the ROI (register of international operations).
Additional commissions
As of May 1, 2021, Google has established an operating cost commission for advertising your company in Europe. The commission in Spain is 2% of the advertising expenditure you have had in the calendar month. This cost was added by Google in order to be able to face the tax imposed by Europe, commonly known as the “Google tax”, and instead of assuming it directly, they make part of this tax be assumed by their clients. What do you think about that?
