Google services can generate revenue for you
Google can generate revenue for you through some of its services, such as Google Ads, AdSense and YouTube. Make sure you get all that you are entitled to and comply with your tax obligations. Tax is not something you should put off. It is easy to set up tax information for Google's services. If you don't do it, then Google may withhold up to 30% of your payouts or hold payouts completely until you complete the tax information and it is is approved. Google has a responsibility under the US Internal Revenue Code to withhold and report taxes, and so do you both to the US authorities and those of your country of residence.
TL:DR — I documented the process I went through to register my Google services for tax through my company, so as to make sure I am in compliance to the best of my abilities, with tax regulations in the United States and the United Kingdom. This applies to a small business set up as a Limited company at Companies House for England and Wales. YMMV. This is not advice. You should always get professional advice on tax!
U.S. Taxpayer Identification Number
Companies outside the US can resigster with the US tax authorities and get a unique Identification number to simplify deailing with US tax issues. If you don't already have one, you can get one in about 15 minutes on the phone by following the U.S. Taxpayer Identification Number Requirement instructions. You might want to do this before proceeding. They will give you the number immediately and write with a confirmation.
Later, once you have completed this process, you'll be able to review your tax documents here. If you are new here, you'll see the alert telling you to submit a tax form as soon as possible.
- Plan on taking 15–20 minutes.
- You will save time if your payments profile for the payee is set up.
- The tax form will need to be signed by the payee or someone authorised to sign as the payee's representative or agent such as a company director.
- You should be able to find the payements info from the menu.
- Check that the mailing address is correct.
- Click the blue "Add tax info" button.
- Read the Before you start information
- Click 'Start tax form'
- You'll have to verify with your google account name and password to continue. Another Browser window will open for you to do this.
- Now you can start to complete the forms.
- I chose 'Non-individual/entity and left the question about 'doing business as' which was then revealed unchecked. Click 'Next' and more of the form will reveal itself.
- I then disclosed thsm my company is not organised or incorporated in the US, and accepted the recommendations that I probably need a W-8BEN-E form.
- Now you can start creating the W-8BEN-E form. Enter your company name exactly as it is regsitered.
- Enter your US EIN. If you don't already have one, you can get one in about 15 minutes on the phone by following the U.S. Taxpayer Identification Number Requirement instructions.
- Click 'Next' to reveal more of the form.
Fill out your address informtion in this section of the form. It needs to a permanent address of your company, and ideally not be a PO Box, but you can use a PO Box or a different address as the mailing mailing address. In my case this is easy, both addresses are the same. I'm sure you dont need a screenshot for this part of the form!
The United Kingdom and the US have a tax treaty. You shold check with an accountant rather than rely upon what I have done, but to the best of my comprehension I've selected the right items for my UK based company getting payments from Google.
- Say 'Yes' to Are you claiming a reduced rate of whitholdong tax under a tax treaty, check the 'Resident of a coutnrry/Region box and choose 'United Kingdom' and check 'Derived the invome and iff applicavke neets the requirements of the treart checkbox and select 'Company that meets the deribative benefits'.
- Click 'Next'
- Certify the form with your name.
- Click 'Next'
- Select 'No', if applicable, to 'Has the entity identified in the tax identity section performed any activities and services for Google within the US. You'll also want to certify, if applicable, that the services provided will be performed solely outside the US and that the labour and capital used will be outside the US.
- If this is a new application you can say so, or you can say that this is an adjustment to an existing payments profile that has previously received payments.
- Click 'Next'
- If you did all that successfully you'll see your accepted tax info for Google, and now all you need to do is look out for tax forms from the US in due course!