@Garnor M wrote:
Hi Meg,
We're working on this and aim to have this information available for you by early 2016.
hi Garnor,
I believe the date it all starts is 1 jan 2016.
Upwork is now covered for there service fee.
But leaving the client and the freelancer in the cold till AFTER jan 2016?
But please take note, yes you are charging the freelancer. And yes all the income Upwork earns are paid by the freelancer.
but the start of all that money comes from the client.
If business clients start to get trouble with invoices printed on "VAT Reverse Charged"
but no VAT ID at all of the freelancer is written on that.
What means the client is evading VAT, criminal charges are on that.
The accountant department of the clients will advice to stop spending on Upwork. At least in the EU. And big parts of the money flow will dry up.
= No work for the freelancers, no commissions to charge on.
Some geographical lessons:
we are with 508 million people and 28 member states.
https://en.wikipedia.org/wiki/Demographics_of_the_European_Union
That are a lot of potential clients to miss out.
Please, look also to the clients that keep this business running. It is a great business model, but if the law starts to forbid us, there is no way then to follow it. Even if we like it a lot.
Please give the freelancer the control of the invoice given to the client. Your Terms and Conditions are already placing all responsibility on the freelancer to provide a formal invoice to the client.
There is nothing to lose on for Upwork not doing it.
The long hesitation of Upwork to allow a VAT nr on the invoice to the client in the name of the freelancer, speak a lot.
I understand that Upwork wants to protect the freelancers that do want to work in the anonymity. But at least give the others that do want to work official the change to choose for them self.
After all, the deal is between the client and the freelancer.
If the client chooses to pay a freelancer that is not declaring his income, then that is the risk of the client. Upwork doesn't take any responsibility on that.
But now, all are in the gray zone. And soon I predict big shocks by clients who see the words "VAT Reverse Charged" printed on there invoice they give their account office.
It is not anymore as paying someone and who cares if he declares that.
Now each client that has those words printed on "VAT Reverse Charged" needs by law to declare those invoices and pay VAT taxes in his country.
If not it will be considered as VAT fraud.
here http://www.foreigninvestments.eu/en/fdi/expert-topics/vat-fraud-with-intra-community-trading-and-how...
how to prevent it, their suggestions are:
- Detail all required information (e.g. VAT numbers, customer and delivery address) on invoices issued;
- Check that all required information (e.g. VAT numbers, addresses) is mentioned on invoices received and, if information is omitted or incorrect, request a corrected invoice;
- Verify the VAT numbers of new suppliers or new customers with the tax authorities or through VIES (VAT Information Exchange System) available at http://ec.europa.eu/taxation_customs/vies;
If the clients do not get the VAT nr of the freelancer printed on the invoice, and has an invoice with the words: "VAT Reverse Charged" then he/she/company is in serious trouble.
Please work on this ASAP and do not leave the client and the freelancer in the cold. It can get very cold after jan 2016!
