VAT on Facebook Advertising ?

Discussion in 'General Business Forum' started by David Breese, Jan 29, 2017.

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  1. David Breese

    David Breese UKBF Newcomer Free Member

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    Hi there - I have recently started advertising on Facebook & have questioned whether or not the FB charges include VAT or not.
    The FB answer below is by no means clear to me, can any members explain ?

    "If your business's address is in the EU, but outside of Ireland, and you purchase Facebook ads for a business purpose, we won't add VAT to the costs of your purchases of Facebook ads. However, you'll be required to self-assess your VAT charges at the applicable rates in the country in which you're doing business. Facebook isn't able to provide tax advice, so please contact your country’s tax authority for additional information about the self-assessment process.

    Do I claim VAT from the amounts I am being charged or not ?

    Thanks in advance

    Dave Breese
    Posted: Jan 29, 2017 By: David Breese Member since: Jan 29, 2017
  2. japancool

    japancool UKBF Big Shot Full Member

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    Are you VAT registered? And did you add that to your FB advertising account?

    If yes, then the amounts they're taking from you are ex-VAT. You will need to account for them as VAT reverse charges.
    Posted: Jan 29, 2017 By: japancool Member since: Jul 11, 2013
  3. mtools

    mtools UKBF Regular Free Member

    393 41
    The invoices I get from Facebook all have a zero percentage VAT applied to it so I will say no. I think that the invoices come from Luxembourg though, so it might be a bit of a con with them charging from Facebook Ireland to customers who aren't vat registered
    Posted: Jan 29, 2017 By: mtools Member since: Mar 27, 2013
  4. JamieM

    JamieM UKBF Ace Free Member

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    Hi David,

    For business advertisers the invoices do not include VAT.

    As mentioned if you are VAT registered then you need to account for the VAT using the reverse charge procedure on your VAT return.

    However, if you are not VAT registered you need to be aware that the value of the Facebook invoices needs to be added to your turnover in calculating when you exceed the VAT registration threshold. You would also need to include other invoices billed in the same way like Adwords for example.
    Posted: Jan 30, 2017 By: JamieM Member since: Mar 22, 2006
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