How do you record / declare Adsense Adwords revenues and expenses?
The general rule under the Income Tax Act is that payments for goods, services and equipment, return on assets, capital gains as well as all other income of the business activity must be recognized as revenue. (15:1 THE)Swedish companies can market themselves on the Internet through advertisements in various Swedish publisher sites (companies) using Google Adwords . Publishers are paid by people click on the ads that appear on their websites using Google Adsense. The revenue from Adsense in other words, income from advertising, which is a service.
Publishers will not sell their services directly to the company, but services are sold to Google, which in turn sell them to them Swedish companies. Enterprises purchase singing its services by Google and not the publisher.
When Google conducts its business in Sweden through a branch in Ireland is a matter of:
– Adsense – sale of services where the purchaser is taxable in another EC country (Ireland)
– Adwords – purchase of services from another EC country (Ireland).
Declaration – declaration of, declare Adsense revenue / income
Since the services are directed to a Swedish audience (A Swedish website) by a Swedish company (based in Sweden) to Adsense income is taxed in Sweden, that is recognized in the tax return.The tax return must Adsense revenue / income recognized on the box 39 Sales of services when the customer is taxable in another EC country.
Declaration – declaration of, declare Adwords expenses / costs
In the case of a Swedish company that makes a purchase from a company (Google) in another EC will cost reported in skattedeklartionen (VAT).The tax return must Adwords expenditures / expenses recognized on the box 21 Purchase of services from another EC country.
There will be NO VAT on Adwords spending, but, nevertheless presented a fictitious tax in the tax declaration. The fictitious VAT is 25 % on the amount of Adwords spending.
The fictitious VAT amount will equal the amount declared both as output VAT (route 30 Output VAT) and the input VAT (route 48 Input VAT to deduct).
When the amounts in both boxes are the same size so they will cancel each other out. The effect is to either get a VAT refund from the Tax Office or paying the VAT to the tax for it made the purchase.
Recordkeeping, record, how to book Adsense revenue / income
Recordkeeping, record, how to book Adwords expenses / costs
