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Frequently asked questions about VAT for EU freelancers

Active Member
Florin P Member Since: Oct 30, 2015
91 of 316

Another question that I think freelancers would very be interested in is this one:

 

When Upwork charges VAT and remits it to local governments, how does it appear on their documents/paper and is it individualized?. As a product purchased by the freelancer (connects etc) or as a fee applied to his income? I think it's an important distinction to make, regarding taxes, since I doubt most people declare every single Upwork contract. If it's just a 2% increase in Upwork taxes and otherwise as harmless as purchasing a watch or other object online, I doubt the measure will send shockwaves throughout the community.

 

In a nutshell, is it possible that local tax collection agencies will get a VAT fee remitted for an individual (they might or might not have registered as a freelancer), with the mention that he performed a job he was paid for? That's a pretty disturbing thought.

 

 

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92 of 316
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@Florin P wrote:

Another question that I think freelancers would very be interested in is this one:

 

 


@Florin P wrote:

Another question that I think freelancers would very be interested in is this one:

 

When Upwork charges VAT and remits it to local governments, how does it appear on their documents/paper and is it individualized?. As a product purchased by the freelancer (connects etc) or as a fee applied to his income? I think it's an important distinction to make, regarding taxes, since I doubt most people declare every single Upwork contract. If it's just a 2% increase in Upwork taxes and otherwise as harmless as purchasing a watch or other object online, I doubt the measure will send shockwaves throughout the community.

 

In a nutshell, is it possible that local tax collection agencies will get a VAT fee remitted for an individual (they might or might not have registered as a freelancer), with the mention that he performed a job he was paid for? That's a pretty disturbing thought.

 

__________

 

If somebody does this he/she will have to bear the consequences. It probabely will be detected sooner or later.  

 

Active Member
Florin P Member Since: Oct 30, 2015
93 of 316

 

If somebody does this he/she will have to bear the consequences. It probabely will be detected sooner or later.  

 



Indeed, it's likely they would run into legal troubles. Still, I think it's important to have an Upwork representative explain how the VAT fee will be remitted since there are significant differences in the fiscal legislation of each country. It's better to know in advance than to be summoned by tax agents to give explanations and get a hefty fine too.

 

Community Manager
Garnor M Community Manager Member Since: Oct 29, 2014
94 of 316

Hi Florin,

Aggregate VAT amounts are reported when we submit our VAT payment to the EU via MOSS so we're not sending it with your personal information.

Active Member
Costin M Member Since: Jun 22, 2015
95 of 316

I think the solution to all these questions regarding invoices is to have upwork/odesk to give us their fiscal information so that we can send an invoice for our services to them.

Community Guru
Joachim M Member Since: Mar 23, 2015
96 of 316

@Costin M wrote:

I think the solution to all these questions regarding invoices is to have upwork/odesk to give us their fiscal information so that we can send an invoice for our services to them.


Please, don't confuse the issuing of invoices to clients with Upwork's fees charged to you. This are two entirely different matters.  

Community Guru
Bojana D Member Since: May 2, 2011
97 of 316

@Joachim M wrote:

@Costin M wrote:

I think the solution to all these questions regarding invoices is to have upwork/odesk to give us their fiscal information so that we can send an invoice for our services to them.


Please, don't confuse the issuing of invoices to clients with Upwork's fees charged to you. This are two entirely different matters.  


But Upwork does need to make changes in the way they're invoicing us too. I'm sure there are a lot of freelancers who, like me, have chosen to operate not as a freelancer (registered, using their own name), but as a small business (legal entity, Ltd or whatever form it takes in their respective country).  Right now Upwork issues invoices to me, as an individual, and does not allow me to enter proper company ID/name. The invoices they issue to me can not be accepted as expenses of my company (according to our tax law the invoice needs to be under the name of my company for that). Combined with the fact that we have 0 information on clients and invoices to them, it's an accounting nightmare. 

Community Guru
Ela K Member Since: Feb 9, 2015
98 of 316

@Pedro V wrote:

With this new change will freelancers be able to have access to the info needed to properly invoice a client? I I want and need access to that client information in order to send my own invoices and make sure they comply with my country's tax laws.


Pedro,

 

While I am glad to see that you agree with what I wrote in another thread - please don't just copy & paste parts of other people's posts and pass them as your own.

 

Thanks,

Ela

Community Guru
Joachim M Member Since: Mar 23, 2015
99 of 316

@Bojana D wrote:

@Joachim M wrote:

@Costin M wrote:

I think the solution to all these questions regarding invoices is to have upwork/odesk to give us their fiscal information so that we can send an invoice for our services to them.


Please, don't confuse the issuing of invoices to clients with Upwork's fees charged to you. This are two entirely different matters.  


But Upwork does need to make changes in the way they're invoicing us too. I'm sure there are a lot of freelancers who, like me, have chosen to operate not as a freelancer (registered, using their own name), but as a small business (legal entity, Ltd or whatever form it takes in their respective country).  Right now Upwork issues invoices to me, as an individual, and does not allow me to enter proper company ID/name. The invoices they issue to me can not be accepted as expenses of my company (according to our tax law the invoice needs to be under the name of my company for that). Combined with the fact that we have 0 information on clients and invoices to them, it's an accounting nightmare. 


I agree that will pose a problem. Here in Germany only hotel bills are affected by a similar regulation, no idea why. 

Active Member
Costin M Member Since: Jun 22, 2015
100 of 316
@jmeyn wrote:

Please, don't confuse the issuing of invoices to clients with Upwork's fees charged to you. This are two entirely different matters.  

I am not making any confusion. These questions about invoices appeared in this thread and are related.

If upwork wants to make all legally, we want the same thing:

We need to send invoices to upwork so that we can easily declare our income we are making here.


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