I don't think you understand how international commerce actually works. If your warehouse is in the USA and someone from the UK orders from you, you can ship t

I don't think you understand how international commerce actually works. If your warehouse is in the USA and someone from the UK orders from you, you can ship the product to them tax free but they will pay an import duty on that item based on the UK value of the item. Google has to pay tax on the advertisement to the UK buyer. This is because the revenue (aka the user clicking on the ad to buy your widget) was advertised in the UK and thus generated revenue in the UK. That's what the 3% tax is on. It doesn't matter if you hosted the ad in the USA or Thailand or on the space station. All that matters is that the consumer "purchased" the ad. The advertiser pays google the ad fee and google pays the state the tax. Simple and straightforward.