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How to Properly Invoice and Report Your Google AdSense Revenue to Tax Authorities?

Some platforms, like Google, make it challenging to properly report the revenue earned through their services. Specifically, Google AdSense does not provide tools for vendors to generate invoices for the revenue they receive, which can complicate reporting to tax authorities. This FAQ will guide you step-by-step on how to issue and report invoices for your Google AdSense earnings.

Generating an Invoice for Google AdSense Revenue



Google AdSense does not issue or request sales invoices for the payments it sends to you. This means that you, as the vendor, must create these invoices yourself. Although these invoices don’t need to be sent to Google, they are essential for accurately reporting your revenue to the tax authorities.

Step 1: Add Google as a Customer



If you haven’t done so already, add Google as a customer in Companio’s dashboard under the Customers section:
Click on “Add Customer” in the dashboard.
The easiest method is to use Google’s VAT number: IE6388047V. Enter it in the VAT field and click “Check VAT”.
Be sure to select “This customer is a company”.

Alternatively, you can enter Google’s details manually:
Name: GOOGLE IRELAND LIMITED
VAT Number: IE6388047V
Address: 3RD FLOOR, GORDON HOUSE, BARROW STREET, DUBLIN 4
This customer is a company? TRUE

Since Google does not require or accept invoices from you, there’s no need to add an email address for Google in this section. Instead, you can provide your own email address to receive a copy of the invoices for your records.

Step 2: Issue an Invoice for AdSense Payments



After adding Google as a customer, you can begin issuing invoices for the revenue you receive from AdSense. Here’s how:
Go to the Invoicing section in Companio’s dashboard and click “Add Invoice”.
Select Google as the client.
Under the description or concept, you can write “Google AdSense earnings”.
Specify the total amount of the revenue.
Set the VAT to 0%:
If you don’t have a VAT number, you don’t charge VAT.
If you have a VAT number, Google’s VAT number makes the transaction an intra-community reverse charge (0% VAT).
The system will automatically generate a unique Invoice Number ID for you.

Finally, open the invoice and cross-check that the amount matches the payment received in the Bank Movements section.

That’s It!

You’ve successfully generated a compliant invoice for your Google AdSense earnings. Keep these invoices on record to ensure your revenue reporting is accurate and complete for tax purposes.

Updated on: 27/11/2024

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