Google has recently released a statement via email indicating that as of 1 November 2016, invoices will now be issued by Google Australia PTY LTD, instead of Google Asia Pacific Singapore.
So what does this change mean for your business?
Google headquarters have previously been offshore, so GST has not been charged, as it doesn’t apply to international purchases. With the billing change, it has now been confirmed that GST (an extra 10%) will now be charged on all Adwords and Google App products in Australia.
GST will be charged exclusive, meaning it will appear as an extra 10% charge as a new line item on your monthly statement.
If your business is registered for GST, this change won’t greatly affect you come BAS time, as you are eligible to claim the GST back. This isn’t the case if your business is not registered for GST though. You will have to pay and won’t be able to claim it back.
The change comes after the Communications Minister’s push for multinationals to pay GST in Australia.
A new set of terms & conditions will be applied, available here: https://support.google.com/adwordspolicy/answer/54818?hl=en These T&C’s will also come into effect as of 1 November, 2016.
Not sure how this will affect your next Adwords Campaign?
Contact our friendly team @ ADFX to assist on 07 5478 4842.