Speaking of VAT, starting January 1, 2019, we don't have to pay VAT when working with Upwork. Instead, Upwork should register as a VAT payer in russian Tax Service and pay it itself. Will it do it or not - it's up to them.
Here's some description of this news: https://zakon.ru/blog/2018/11/09/nalog_na_google_ili_skazka_o_tom_chto_s_1_yanvarya_2019_g_inostrann...
As always, there are some caveats, but technically it's not our problem anymore.
Anything can happen here...
But for now, it seems not that bad. The worst thing that can happen according to current laws is that they will make us pay that VAT again.
But which new laws are to come, who knows...
To clarify, the topic discussed on this thread is related to freelancers withdrawing their earnings from their Upwork account. If you have questions regarding your tax obligations related to payments you'll be making on Upwork as a client, please consult your tax advisor. Feel free to follow up if you have any questions or need assistance.
Your link is broken (http 404). I found this article about Confirmation of Services form. But why this form does not have:
- field of Service Fee
- field of VAT
- field of Withdrawal Fee
- The final amount of payment that shall be remitted to the Freelancer constitutes
Could you, please, update Confirmation of Services form and add this fields or create another version of the pdf?
Nikolai, this doc was designed in another way. It works like Upwork pays you directly, like there were no clients, VAT and etc. So it just states the final amount which Upwork owes you without all comissions.
The banks usually ask Transactions Report to get the actual values they need.
But in the user agreement says:
Upwork Escrow will credit the Freelancer
Escrow Account for the full amount paid or
released by the Client, and then subtract and
disburse to Upwork the Service Fee.