Home – New Forums Money matters Adsense Earnings in Australia

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  • #974824
    Marc1980
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    Hey everyone,

    My accountant believes that Google Adsense income is considered to be foreign-sourced income and GST does not apply – even if you have a website is a .com.au, hosted in Australia, and generates income from Google’s ads (from aussie businesses) – just because you get paid from Ireland.

    Is anyone able to share their experiences in terms of how they handled their Adsense income?

    Thanks in advance,
    Ellie

    #1070587
    Marc1980
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    No one has any experience with this? :)

    #1070588
    Luth6322
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    Hi Ellie

    I don’t have any experience with Adsense, but I did a quick look on the net and it does appear to be included as foreign income as its originally from Ireland.

    Cheers

    Carrie

    #1070589
    Neill
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    Hi Ellie,

    I thought I saw this Q in another post and replied to it? I can’t find it now… :(

    I have dealt with this same issue before with our former Australian company. The conclusion we came to was the same: the contract with with – and the ads were being posted by – a Google Irish company, so no GST applies even though the ads appear on your Australian website.

    I think you are ok going with your accountant’s advice here, but best get it from them in writing (even if it’s only an email) just to be safe. If you’re still unsure, get a second opinion or a private ruling from the ATO (but that may be going overboard?)

    Regards, Neill

    #1070590
    kathiemt
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    That was my understanding too. The income is coming from overseas, irrespective of how it’s being generated.

    #1070591
    Alan Maddick
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    In this case (I have a lot of clients in this situation) GST does not apply. You are providing a service to a foreign company (google ireland) and so is a form of export.

    As already mentioned it is a matter of where the company you provide the service to is located rather than .com / .com.au issues.

    There are other issues of attribution of foreign income but we have managed to escape them for all out adsense clients so far so you should be pretty safe to ignore GST and declare the income on your Australian tax return.

    This is pretty easy it was much worse when most adsense income was paid out of the US! :) (no one really wants to deal with the IRS)

    #1070592
    seocourse
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    Marc1980, post: 87992 wrote:
    Hey everyone,

    My accountant believes that Google Adsense income is considered to be foreign-sourced income and GST does not apply – even if you have a website is a .com.au, hosted in Australia, and generates income from Google’s ads (from aussie businesses) – just because you get paid from Ireland.

    Is anyone able to share their experiences in terms of how they handled their Adsense income?

    Thanks in advance,
    Ellie

    Yes GST doesn’t apply.
    I have been declaring Adsense for over 4 years and it goes as Export..

    #1070593
    Marc1980
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    My concern is not about GST – This is clarified in many ATO rulings.
    I’ve immigrated and live overseas now and pay taxes here. In Australia, you don’t pay tax on foreign income when you leave Australia permanently, which is why I would like to know specifically whether the income is foreign-sourced or not. All work is performed outside of Australia and I get paid from Google Ireland.
    The fact that a few domains I have are .com.au’s and are hosted in Australia concerns me. To complicate it further, 20% of the visitors that visitor the .com.au’s are overseas.

    Can you argue that some one blogging about the same thing on a .com which is hosted it outside Australia wouldn’t be liable for any tax in Australia?

    I’m deeply confused :D

    #1070594
    nel
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    even though the income is foreign sourced, if you earning and money goes australian bank, and the income is in australia, then you would have to pay tax, as a non-resident.

    if however your adsense account is not not an australian one but a foreign one, then you only pay tax in the foreign country because you would be considered a non-resident for tax purposes.

    regarding the .com.au domains- i am not too sure, pretty certain you dont pay tax just for holding a .com.au domain. u may need to ask a professional on this one

    #1070595
    Marc1980
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    Hey Nel, thanks for the input. Don’t think it matters too much where the money goes. I personally nominate that account in Australia because it pays off an old loan and saves me having to do an international transfer and will soon be switching to an overseas account once the loan’s paid off. Getting paid into an Australian account doesn’t mean you need to pay tax on it, as far as i’m aware.

    #1070596
    DigitalDomination
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    My adsense revenue has no GST on it. I’m not sure why this is confusing. I’m not charging or paying GST – so it’s not relevant?

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