|
Home
SEM News
Google Adwords set for VAT rise
2004-01-09
Customers of Google's Adwords service will experience a price increase at the end of this month.
From January 22nd, Google will be billing from its European headquarters in Dublin instead of from the US, and so the Irish VAT rate of 19 per cent will have to be paid.
Those businesses that are VAT registered will be able to claim the money back but others will simply have to put up with the increase.
Adwords is a paid, context sensitive placement scheme, short text advertisements appear against search results or pages with related content and advertisers bid for the keywords they would like to trigger their display.
This change indicates that Google is decentralising its payments systems, which could mean that at some point websites hosting advertisements would be paid locally.
Currently, UK advertising hosts are being sent American cheques, which can cost more than £5 to cash, but Google have said it is investigating alternative methods of payment.
Read more
|