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Re: Russian Freelancer Documentation for Wire Transfers

Active Member
Andrey S Member Since: May 7, 2015
61 of 207

Hi, Valeria!

 

According to news about new law

 

http://www.garant.ru/news/749357/

 

you are right and NDS (VAT) is not applicable for Upwork fee. But I can't find this exception in tax laws of Russia. Can you give us url to related part of law? This can be very useful for all Russian freelancers if tax police will have questions.

Highlighted
Active Member
Andrey G Member Since: Jun 22, 2015
62 of 207

The Russian Federation doesn't have a VAT (NDS) charge for ESS (Electronically supplied services). Therefore, the service fee shouldn't be applicable for VAT (NDS).

 

Could you provide a prooflink?

Ace Contributor
Ilya S Member Since: Jun 22, 2015
63 of 207

http://www.garant.ru/news/749357/

- this is another argument why we need to get the old docs back.

According to the new docs Russian PE freelancers will have to pay more taxes.

 

Previously we paid:

 

Upwork service fee + 6% from the rest.

If the fee is 10% then it is:

x * 10% + (x - 10%) * 6% = 15,4%

 

With the new docs:

 

we will have to pay upwork service fee + 6% from all earned money before the fees + NDS for upwork fees.

For 10% fee it will be this:

x * 10% + x * 6% + x * 10% * 18% = 17,8%

 

2,4% more taxes just because of the new docs. And Upwork doesn't have any profit in it.

Active Member
Andrey G Member Since: Jun 22, 2015
64 of 207

Actually, we'd need to pay more taxes because of new law, not new docs. I'm planning to switch to patent to avoid that.

Ace Contributor
Ilya S Member Since: Jun 22, 2015
65 of 207

@Andrey G wrote:

Actually, we'd need to pay more taxes because of new law, not new docs. I'm planning to switch to patent to avoid that.


New law relies on NDS only.

The docs rely on tax base (налогооблагаемая база). Previously it was the amount without upwork fees, now it's the amount with upwork fees. 

 

Patent is a good solution, I'm also planning to switch to it.

However if you earn more than 300k rubles yearly then you need to pay 1% to pension fund. The new docs rely on how the amount you earn is calculated. Now it will be greater, so we'll have to pay more to pension fund anyway.

Active Member
Andrey S Member Since: May 7, 2015
66 of 207

Patent is not a way to avoid paying of NDS. But it can help to compensate loses.

 

I hope that right now we should not pay it and after new year Upwork will register as tax agent in Russia to pay NDS. In this case we will lose some money, but we will avoid very complicated procedure of paying NDS.

Active Member
Andrey G Member Since: Jun 22, 2015
67 of 207

 Patent is not a way to avoid paying of NDS. But it can help to compensate loses.

 

 

Could you provide a prooflink? According to this article (https://kontur.ru/spravka/63-nalogi_psn) we won't need to pay NDS while using patent. Also see п. 11 ст. 346.43 НК РФ as a proof:

 

11. Индивидуальные предприниматели, применяющие патентную систему налогообложения, не признаются налогоплательщиками налога на добавленную стоимость, за исключением налога на добавленную стоимость, подлежащего уплате в соответствии с настоящим Кодексом:
1) при осуществлении видов предпринимательской деятельности, в отношении которых не применяется патентная система налогообложения;
2) при ввозе товаров на территорию Российской Федерации и иные территории, находящиеся под ее юрисдикцией, включая суммы налога, подлежащие уплате при завершении действия таможенной процедуры свободной таможенной зоны на территории Особой экономической зоны в Калининградской области;
3) при осуществлении операций, облагаемых в соответствии со статьей 174.1 настоящего Кодекса.

 

Please be careful making such announcements without prior checking.

Active Member
Andrey S Member Since: May 7, 2015
68 of 207

Please, read end of your page. There is note that businessmen should continue to be tax agent for NDS. 

Active Member
Andrey G Member Since: Jun 22, 2015
69 of 207

 


@Andrey S wrote:

Please, read end of your page. There is note that businessmen should continue to be tax agent for NDS. 


 Hmm, looks like you're right.

Active Member
Ruslan K Member Since: Jul 26, 2015
70 of 207

Would be great to get feedback from Upwork representatives as soon, as possible: we had only one legal way to pay taxes, now we haven't it.

Many of freelancers didn't know, what to do now: as Upwork asks to widthraw funds before Sep 26 and didn't allow to use old forms.
We have only 5 days on this week(including today-Monday) to verify new documents by our banks.

We don't think that this takes a lot of Upwork resources to review and sign one financial document(old form - confirmation of services) once per month or even 3 months.
We don't think that anything becomes easier after new changes - that is not true. We got a lot of problems.
And even if "one of the best law agencies" consulted Upwork regarding these new forms: look like this work was done by somebody uprofessional who doesn't care about nuances of our work. Please take a look, how much mistakes were found in the docs several days ago.
One of these mistakes(like Ukrainian instead of Russian) may cause a big problems with our tax police.
And tax violation in the cross-border money transfer process may cause fines - 75%-100% of withdrawn amount.

So I somebody got $5000 from Upwork and tax police doesn't accept his documents - he have a risk to pay $5000 fines. Of course, it is not Upwork problems, but let's work together to make life easier - both for freelancer and Upwork.


Please, listen to your users: let us use old forms and stay legal.

Ruslan Konygin