How to report Adsense income

At the time of create your website or some kind of online service you can use the Adsense system to earn money online thanks to the visits you receive on your website, however, the time may come when income that you are receiving thanks to this system are considerable enough to think that it could be necessary to declare them and pay taxes.

It might not be the case for everyone who uses Adsense because most do not perceive visitor traffic large enough to have such a considerable income of money, but there can always be a time when this is not the case, and the your website traffic grows exponentially and you need to start thinking about these kinds of dilemmas. Before entering into the dilemma about whether it is absolutely necessary to declare the income that you receive independently on a website, we must learn what exactly is the Adsense system, and how it works:

What is adsense and how does it work?

Adsense is a simple and free way to receive income on your website publishing ads that are oriented to the online content of the page. Adsense shows website visitors ads that are relevant and attractive and can even be customized to match the design of your website.

These ads are created and paid for by advertisers What do you want to promote? your products or services on a website and they pay different rates for each type of ad, and the amount of money they receive will vary in relation to this.

Adsense works in three easy steps:

• Prepare your website banner ads: This is done by pasting the ad code where you want to post it.
• The highest paying ads will be the ones that appear on your website: Advertisers are constantly bidding to appear in advertisements on sites through a real-time auction, the ads with the highest bid in these auctions will appear on your website.
• Earn money: Adsense takes care of the invoices for all advertisers and ad networks that appear on the websites, they make sure that you receive all the corresponding payments.

El registration process it's very simple, just send one application to Adsense site, they review it and notify you in a week by email

How to report Adsense income

When you already have an economic activity registered, and you are also registered high in Social Security and you have a web page in which you decided to use the adsense system the procedure is simple. It is enough to communicate the start of an additional activity economic in the Tax Agency, and in the Social Security Treasury.

In the case of the Social Security Treasury, the fee you will receive will be the same, even so, even if you have different economic activities. And for the Tax Agency, what you will have to do is declare the income quarterly and annually in the corresponding box of the new heading, in the same way, we will communicate the data of our client, which in this case would be Adsense, if the annual income exceeds 3,000 euros .

Doubts usually arise when it is the case that we do not have any economic activity registered previously, and let's have a website in which we are using Adsense, be it a blog, website, YouTube channel, a social network, a news chain, among others; So what are making a considerable income of money through Adsense ads.

In the latter case we must know that the type of contract that we sign with the Google company which is the owner of the Adsense systemIt is a commercial service provider contract, this means that there is a buying party, which is Adsense, which pays us, and a selling party, which is the one that uses our website to advertise.

With the above we are clear that this is what our type of economic activity is about, is an advertising activity, for that reason you have to register it with the Tax Agency, in which we have to register when we start our contract with Google, which is when we start the activity, regardless of whether we are not yet generating income.

Adsense, in its policies establishes as a rule that begins to generate income from the month after we have generated $ 100 per month, So at the moment in which we have to make the quarterly declarations, since we have not generated any income, the declaration will be presented as zero income, since we begin to generate income and the quarterly declaration arrives, then we will declare all the income that we had during that quarter, and so on in future statements.

In the case of Google payer is Google IrelandDue to this, the operations that we are going to find is that because it is not a Spanish company, but is a European Union company, this is not subject to VAT. In that case you have to process the registration with the Registry of Intra-Community Operators through form 036.

After this we will have generated the obligation to present quarterly, as we mentioned earlier, in a specific model called the Form 303 for VAT settlement and annually a summary through model 390. In addition to carrying out a record of invoices issued and received, which must be kept for at least a period of four years, which is the VAT statute of limitations.

Apart from this it is also due to present quarterly with model 130 of fractional payment of Income Tax on Individuals (IRPF), in which the income obtained from advertising will be indicated, and the expenses that may be charged in that activity, and on this difference calculate the 20% that is the one that must be paid in the Treasury, then regularize in the annual tax on the rent.

It is vitally important to remember that all these statements must always be made, even when we do not have any type of income and we have not charged or spent anything, in that case the accounts will go to zero, nothing will have to be paid, but they must be presented Similarly.

Also in case you are charging or paying for some external provider, more of 3000 euros a year, you have to do model 347, which is for operations with third parties.

With Social Security, the way in which our economic activity will be defined will be with the Statute of the Self-Employed Worker, this is defined as the natural or legal person who carries out an economic activity that is regularly, personal, direct and for profit. .

It is registered in this way with social security since our economic activity is on a regular basis, the website on which we have Adsense is public continuously, it is our property that makes it personal and direct, these characteristics of our type of economic activity qualify us as a autonomous worker.

Since we are registered as self-employed with Social Security, the minimum monthly cost would initially be 260 euros, however, you can opt for the so-called flat rate, as long as you have not been registered as a self-employed worker in the five years previous and do not have employees under your charge. In this case that you opt for a flat rate, the cost would be about 50 euros per month in the first six months, 130 euros per month in the other six following, 189 euros per month for another six months, and another six more if you are under 30 years old, going after this to the normal fee of 260 euros per month.

Another circumstance that can be considered for lower registration costs to Social Security is to be working for someone else, in that case you can opt for a 50% reduction in the account of a self-employed worker, which would be the case for most Adsense users.

Make sure you are well advised

To end the article, it is worth mentioning that they can be informed with a wide variety of rumors about how statements should be made according to cases such as Adsense, such as, for example, that If the minimum wage is not reached, it is not necessary to register, this is not entirely true. So you better try be as careful as possible with these issues and it is better to leave it in the hands of an expert who advises in the best way with your case, so that possible problems can be saved in the future.