Why we need your business location (and maybe VAT information)

Why we need your business location (and maybe VAT information)

Bing Ads charges value-added tax (VAT) in certain countries/regions. Although this affects mostly customers in Europe, we need all advertisers to have a business location for each of their accounts.

Bing Ads charges value-added tax (VAT) in certain countries/regions. Although this mostly affects customers in Europe, we need all advertisers to have a business location for each of their accounts.

How does this change affect me?

All Bing Ads customers will need to have a business location listed for each of their accounts. Business location is the country/region where the advertiser's business is legally registered. Whether you will be charged VAT on your advertising costs will depend on your business location and your VAT registration status. If you are in a business location that has VAT accounting obligations, you will need to enter your VAT registration number. If you do not provide your VAT registration number, Bing Ads will start charging VAT, in most cases. VAT will be charged based on your local rate.

Add your business location
Are there requirements to pay VAT?
NO
YES
All done!
Did you enter a VAT registration number?
NO
YES
VAT will be charged by Bing Ads
VAT will not be charged by Bing Ads. (A 0% reverse charge will be applied.)
Notes
  • Most of our monthly invoice customers will have a business location and, if applicable, VAT information in our system. If you need to make changes, please contact your account manager or contact support.
  • If you are an agency managing client accounts, the business location is based on your client (the sold-to customer).
  • For customers in Brazil or India, your business location has been set and cannot be changed.
  • For customers in Ireland, Switzerland, or Lichtenstein, Bing Ads will charge VAT unless a VAT exemption certificate is provided.
  • If you have a VAT exemption certificate, please contact your account manager or contact support to find out how to submit an electronic version of the document.

Why are Bing Ads advertising services now subject to VAT in certain countries/regions?

Bing Ads is changing the way it does business with its advertising customers in Europe, the Middle East, and Africa. Customers in these locations will be billed by Microsoft Ireland Operations Ltd. (Formerly, Bing Ads customers in Europe, the Middle East, and Africa were billed by Microsoft Online, Inc.) Because the billing entity is located in the European Union, the purchase of Bing Ads advertising services is subject to VAT in some business locations.

Who is required to pay VAT on advertising costs?

If you are a customer with a business location in one of the following three countries/regions, Bing Ads will charge VAT at your current local rate unless a you provide a VAT exemption certificate.

  • Ireland
  • Lichtenstein
  • Switzerland*

If you are a customer with a business location in one of the following countries/regions, Bing Ads will not charge VAT if you provide a VAT registration number. (A 0% reverse charge VAT will be applied to your invoice and billing statements.) If you do not provide a VAT registration number, Bing Ads will charge VAT at your current local rate. If you provide a VAT exemption certificate, Bing Ads will not charge VAT.

  • Austria
  • Belgium
  • Bulgaria
  • Croatia
  • Cyprus
  • Czech Republic
  • Denmark
  • Estonia
  • Finland*
  • France
  • Germany*
  • Greece*
  • Hungary
  • Italy*
  • Latvia
  • Lithuania
  • Luxembourg
  • Malta
  • Monaco
  • Netherlands
  • Poland
  • Portugal
  • Romania
  • Slovakia
  • Slovenia
  • Spain*
  • Sweden
  • United Kingdom*

*These countries/regions contain small regions that are exempt from VAT. This exclusion will be based on the business address that you provide.

For more specific information on taxes in each country/region, see Tax or VAT information.

How do I add my business location?

If you don't have a business location in Bing Ads, you'll be prompted to add one when you sign in.

The steps to add your business location are different depending on whether you have one account or multiple accounts:

I have one account expando image
  1. Click the gear icon gear icon, and then click Accounts & Billing.
  2. On the Accounts tab, click the pencil icon pencil icon next to Business location and tax information.
  3. Select your business location.
  4. Based on your business location, you might need to enter your business address and VAT registration number.
  5. Click Save.

If you add a VAT registration number, it can take up to 3 days for the number to be validated.

I have multiple accounts expando image

If you have multiple accounts that will use the same business location, you can add it to all of them at one time. (If you are an agency, you can only edit business location for the same client at one time.)

  1. Click the gear icon gear icon, and then click Accounts & Billing.
  2. If you have multiple accounts, select an account from the drop-down list at the top of the page.
  3. On the Accounts tab, select the check boxes next to the accounts that you will update with the same business location.
  4. Click Edit, and then click Business location (Tax info).
  5. From the drop-down list, select your business location.
  6. Based on your business location, you might need to enter your business address and VAT registration number.
  7. Click Save.

You can also update accounts individually.

  1. When you see the request to update your business location, click Update business location.
  2. In the business location column, click Set location.
  3. From the drop-down list, select your business location.
  4. Based on your business location, you might need to enter your business address and VAT registration number.
  5. Click Save.

If you add a VAT registration number, it can take up to 3 days for the number to be validated.

Changes to your invoices and statements (Europe, the Middle East, and Africa)

For our customers in Europe, the Middle East, and Africa, Microsoft Ireland Operations Ltd. will be responsible for all billing documents (invoices, statements, credit notes, and refunds) and all payments will need to be made to Microsoft Ireland Operations Ltd. In October 2016, you are likely to see two statements or invoices: one from Microsoft Online, Inc., to close out any outstanding charges; one from Microsoft Ireland Operations Ltd. for charges that you accrue during the remainder of the month. Postpay threshold customers might see a credit card charge on their card at the time of transition from Microsoft Online, Inc., to Microsoft Ireland Operations Ltd. This charge will close out any outstanding charges. Starting October 2016, statements and invoices will start to show applicable VAT charges.

Countries/regions where Bing Ads currently charges taxes on advertising costs

Bing Ads currently charges tax on advertising costs in Australia and India. These countries/regions are not affected by this change. To get information on taxes in these and other countries/regions, see Tax or VAT information.

More questions?

Here are more frequently asked questions.

What is value-added tax?expando image

Value-added tax, or VAT, is a consumption tax that is assessed on goods and services consumed in the European Union and in other countries. VAT is charged to the customer as a percentage of the price of the goods or services sold. The collected VAT is transferred to the appropriate tax authority.

What is a VAT registration number?expando image

A VAT registration number (also called a VAT identification number) identifies a business customer who has registered to pay VAT, if required, directly to their local tax authority. In European Union countries, the VAT registration number starts with 2 letters that are specific to each country/region, followed by a maximum of 12 numbers or letters. After you enter your VAT registration number, validation can take up to 3 days. You will be notified in Bing Ads if there was a problem validating your VAT registration number.

What is a VAT exemption certificate?expando image

A VAT exemption certificate is a document that identifies a customer as an organization that is exempted from paying VAT (for example, a registered charity).

How do I add a VAT exemption certificate?expando image

If you are exempt from paying VAT, please contact your account manager or customer support. They will need an electronic version of your VAT exemption certificate (PDF, JPG, or PNG) to put on file. Each VAT exemption certificate must undergo a review process that can take up to a week.

I'm an agency. Do you want my company's business location or the business location for my client?expando image

Business location is based on your client (the sold-to customer). If applicable, VAT registration number and VAT exemption certificates need to be those of your client as well.

I'm from a country/region that has VAT requirements. What changes will I see in my billing invoices and statements?expando image

If you have provided a VAT registration number, you will see your VAT registration number listed and a VAT 0% reverse charge in the subtotal section of your monthly invoice, statement, or credit memo.

If you have not provided a VAT registration number, you will see the VAT rate in the subtotal section and the charge to your account. The VAT rate is based on your local rate.

If you have provided a VAT exemption certificate, you will see on your invoice or statement that the certificate is on file and the VAT rate will be 0%.

I'm a customer in Europe, the Middle East, or Africa. What changes will I see in my billing invoices and statements?expando image

After the transition from Microsoft Online, Inc., to Microsoft Ireland Operations Ltd., monthly invoices and statements will come from Microsoft Ireland Operations Ltd. The new payment instructions will be shown on the invoice.

Why haven't I seen the request to enter a business location?expando image

Most monthly invoiced customers will already have a business location and VAT information, if applicable, in our system. Also, you or someone at your business might have been contacted by an account manager or another Bing Ads team member to get your business location into our system. In these cases, you won't see a request when you log in.

How do I edit my business location?expando image

The instructions for editing your business location depend on whether you have one account or multiple accounts. If you are a monthly invoice customer and need to change your business location, please contact your account manager.

If you have one account

  1. Click the gear icon gear icon, and then click Accounts & Billing.
  2. In the Tax section, click the pencil icon.
  3. Next to Business location, select the country/region where your business is legally registered.
  4. Click Save.

If you have multiple accounts

If you have multiple accounts, you can update the business location for more than one account at a time as long as the accounts are similar (same Customer ID and account type).

  1. Click the gear icon gear icon, and then click Accounts & Billing.
  2. Select the check boxes next to the accounts that you want to add or update the business address for.
  3. Click Edit, and then click Business location (Tax info).
  4. Edit your business location.
  5. Click Save.
Who do I contact if I still have more questions?expando image

If you have an account manager, please contact them. Otherwise, please contact support.

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