Google Charging GST From November 1

October 13, 2016 By Phillip Wendell

You may have noticed some updates to Google’s advertising terms, when logging into an Australian AdWords account this week.

From November 1, your Google AdWords invoices will include an additional line item showing the GST portion charged.

What does this mean?

Your Google AdWords costs will now need to be factored into your BAS returns, the same as any local purchase or expense. This means you can claim back the GST spent on Google AdWords, against purchases your business was charged GST for.

Claiming back this GST is a standard task for any accountant or bookkeeper, you just need to collect the invoices from your Google AdWords account for their analysis, from November onwards.

How To Retrieve Google AdWords GST Charges

Once logged into Google AdWords, head to the ‘cog’ icon up the top right. Click on the ‘billing’ menu option.

google adwords getting to billing screen

Scroll down and select ‘All transactions’, then ‘Taxes’.

google adwords interface account screen

From there, select your date range to see the exact amount of GST you were charged.

A Copy Of The Official Email From Google AdWords:

Dear AdWords Advertiser,

This email is to inform you of important changes to the Advertising Terms affecting your AdWords account.

1. Assignment

With effect from 1 November 2016, SG is assigning the portion of your advertising contract relating to your Australian AdWords account, including any amendments and related agreements (such as Service Agreements), to Google Australia Pty Ltd. This means that from that date, Google Australia Pty Ltd will be bound by the terms of the contract and will be providing the service to you in Australia and invoicing you for that service. All other AdWords accounts that you may have with non-Australian entities will continue to be serviced outside of Australia.

Shortly after the assignment date, you will start receiving invoices from Google Australia Pty Ltd (rather than SG) which will have new payment details/remittance information. When this happens, please make sure that you send payments using the new remittance information.

2. GST

Google Australia Pty Ltd is required by law to charge 10% GST (Goods and Service Tax) on its services so you will see this appear as a new line item on your invoices from 1 November 2016.

Please contact your tax advisor if you have any questions regarding the tax consequences of this change.

3. Changes to the Advertising Terms

On 1 November 2016, certain sections of the Advertising Terms will be changed. A copy of the updated Advertising Terms is now available here. From 1 November 2016, those new Advertising Terms will be available in the terms and conditions finder, here.

Neither the assignment nor changes to the Advertising Terms should cause any interruption to your service.

If you have any questions regarding these changes please click here to contact us (update 7/2018 Google removed page).

The Google AdWords Team

Google Asia Pacific