Microsoft ads tax?

[StartStar]

Hello, just wanted to ask if anyone running Microsoft ads has the same experience as me.

Whenever I deposit money to my Microsoft ads account, I get charged tax immediately. So when I deposit for example $100, I will only receive about $80 in spendable money. I have never seen something like this, this is -20% ROI before even starting any ads...

Please let me know if this is always like this or am I doing something wrong?

 

[Graybeard]

What is your VAT rate?
Ad purchases may be subject to your VAT with that VAT remitted to your government by Microsoft --they have international lexis (for taxes).

 

[StartStar]

What is your VAT rate?
Ad purchases may be subject to your VAT with that VAT remitted to your government by Microsoft --they have international lexis (for taxes).

So does that mean only some countries have to pay tax upfront? I basically have no chance to compete against those who get all the money they deposit vs me who lose 20% before even starting?

 

[StartStar]

Not US persons when their domiciled state's sales tax is not on services --only physical products (that's me! yay)
The EU guys came out strong for digital goods tax liability 10 years ago --came back to bite --did it?
The EU wanted to VAT Tax all its citizens at their domiciled (home nation's) rate.
How's that workin' out?

Your government puts you at a disadvantage in the global marketplace --bottom line.

Ok so back to day job

 

[Graybeard]

Not US persons when their domiciled state's sales tax is not on services --only physical products (that's me! yay)
The EU guys came out strong for digital goods tax liability 10 years ago --came back to bite --did it?
The EU wanted to VAT Tax all its citizens at their domiciled (home nation's) rate.
How's that workin' out?

Your government puts you at a disadvantage in the global marketplace --bottom line.

 

[StartStar]

Not my doing

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Of course not I am just depressed for long time, now even more. Spent about $1k on ads just to find out I cant even compete.

 

[StartStar]

It gets even worse
Any ad referral from your pre taxed ad --that person pays VAT on his purchase to his state in EU.

Do you have a VAT resale ID #?
The ads may be exempt as a COG in the product that you will pay net taxes on --you marketing business
**consulting an accountant in you tax jurisdiction is probably the best way.

I am running ads to the US only anyways, nothing in the EU.

 

[Graybeard]

Not my doing

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[StartStar]

Doesn't matter you are being taxed as a consumer.
Microsoft will probably accept a VAT number (resale cert) and not tax you.
Every real business has to have a VAT number (resale cert) so they can tax your business profits as income.
Are you a registered business? gotcha ...
**I used to work at a webcam business BV we always got this from cam studios and many affiliates.

Ok I just figured it out... If I dont want to pay that extra 20% I need to enter my VAT number, and for that I need to open a company if I understand it correctly...
I dont have a business yet, I first wanted to get a feeling for it before opening one.

 

[mitxelvital]

Hi, it's good, thank you!!

 

[Graybeard]

It gets even worse
Any ad referral from your pre taxed ad --that person pays VAT on his purchase to his state in EU.

Do you have a VAT resale ID #?
The ads may be exempt as a COG in the product that you will pay net taxes on --you marketing business
**consulting an accountant in you tax jurisdiction is probably the best way.

 

[brianspilner]

What is the process for TDS payment reimbursement? As we operating from prepay account.

 

[MSD]

Hi, thanks for sharing the experience, do we still facing the Tax issue now?

 

[Graybeard]

Doesn't matter you are being taxed as a consumer.
Microsoft will probably accept a VAT number (resale cert) and not tax you.
Every real business has to have a VAT number (resale cert) so they can tax your business profits as income.
Are you a registered business? gotcha ...
**I used to work at a webcam business BV we always got this from cam studios and many affiliates.

 

[MarkTwels]

Hi, thanks for sharing the experience, do we still facing the Tax issue now?

I'm also interested

 

[Graybeard]

Here its not that big of a deal (US) 'land of opportunity' since 1776
DBA, Business bank account, IRS EIN $10 or $20 and a day or two to get 'organized' to be minimally functional.

In Europe clerks, paper work and fees, fees, lawyers ....

We moved the cam site BV corp offshore ( Caribbean ) because of the NL tax issues.

 

[Graybeard]

According to Facebook policy, accounts in these countries will be taxed when paying FB.

According to FB policy, accounts in these countries will be taxed when paying FB. Bahamas Cameron Indonesia Kenya Korea Malaysia Nigeria New Zealand Russia The United States of Hawaii United States New mexico Vietnam South Africa Zimbabwe

www.affiliatefix.com

regarding Facebook

The government will be installing tax deposit locking lids on toilets next: Pay your shit tax or else!