Truth is, I am not sure how new this is, but I am seeing questions about it in the Google AdWords Help forum.
In short, advertisers not based in the US may have to withhold and pay their own VAT or Value Added Tax.
Katie O. from the Google AdWords team responded to this advertiser saying, "I would like to confirm that we do not charge advertisers VAT anymore, therefore it is the advertisers' responsibility to self-assess it if necessary."
If you read the help documents it says the same thing, that they moved any personal account to a business account in many cases and that the advertiser needs to deal with the taxes directly with their government.
It says:
- Your AdWords or AdWords Express tax setting has been changed to "business."
- Non-Irish advertisers: You're now responsible for determining taxes due at your country's local rate.
- Irish advertisers: We'll continue adding VAT to your charges.
- If you were using AdWords or AdWords Express for non-business reasons in the EU, you'll need to cancel your account.
I am not too close to the international advertiser issues but it seems like this change is confusing some of the smaller advertisers.
Forum discussion at Google AdWords Help.
