Reply
cancel
Showing results for 
Search instead for 
Did you mean: 
Reply

Re: Update to Invoices for Freelancers and Clients

lenaellis
Moderator
Lena E Moderator Member Since: Apr 7, 2015
1 of 40

After February 15th, freelancers will be able to view and download invoices that are sent to clients by going to their Reports.  

 

Additionally, to conform to legal requirements for VAT compliance, both freelancer and client addresses will appear on invoices if the client is located in a VAT country. Displaying an address is optional for non-VAT clients by marking a checkbox on the company contact information page.


client address option.png

 

This is a retroactive change and once made, addresses will be visible on all current and past invoices from March 2015 onward. Please take a moment to verify or update the address you want displayed. Freelancers, you can find this under your contact information setting, and clients under company contact information.



For reference, here’s how your address will appear on invoices:

 

invoice.png

 

 

Update 2/17/21

We want your invoices to always show your name, address, etc., as you had it listed at that time. Because of that if you update your information, your past invoices will not reflect the update. This is for accuracy and to ensure that your invoices reflect the same information as they did on the day they were created. Also, if you live in certain areas, we must collect taxes, such as sales or VAT. Having the proper address displayed at the time of invoicing is important to show what taxes were applicable and charged.

Untitled
colettelewis
Community Guru
Nichola L Member Since: Mar 13, 2015
2 of 40

Yay!

 

Thank you Lena for this great news!

lenaellis
Moderator
Lena E Moderator Member Since: Apr 7, 2015
3 of 40

Hi Margarete,

 

This change is to now allow freelancers the ability to view and download their invoices that are sent to clients. This update does not include an ability for freelancers to charge VAT, and I think thats what you're referring to with the applicable tax laws. We don’t have an immediate timeframe for a functionality to charge VAT, but will let you know once we have more information.

 

-Lena

Untitled
jmeyn
Community Guru
Joachim M Member Since: Mar 23, 2015
4 of 40

Lena, that's good news with a few exceptions. A client from overseas hiding his address will have to be treated like a client in my own country, full amount of VAT will have to be charged. For EU clients I have to know at the time of bidding whether or not they have a valid VAT ID. So to sum it up, everything stays as it was before. I still have to add to every singly bid:

 

I would like to point out that the price quoted includes 19% German VAT. Should you provide me with your full address and your valid VAT number BEFORE awarding the job I will deduct the VAT from the price and amend my proposal accordingly. Clients outside the EU need only provide their full address. EU clients please note: To be valid your VAT number must pass the EU's VIES system  (http://ec.europa.eu/taxation_customs/vies/). 

jmeyn
Community Guru
Joachim M Member Since: Mar 23, 2015
5 of 40

@Margarete M wrote:

Upwork knows very well how to issue proper invoices. Their own service fee invoices correspond with EU laws. So, why not ours? This will cause a lot of problems for freelancers and for Upwork as well because the VAT "disappears" on the invoices and this will be regarded as VAT fraud and prosecuted.


 Why would Upwork bother about VAT fraud from your side? The invoice is issued on your behalf!

klavina
Ace Contributor
Gunta K Member Since: May 6, 2015
6 of 40

Additionally, to conform to legal requirements for VAT compliance, both freelancer and client addresses will appear on invoices if the client is located in a VAT country.

 

Lena, this is not happening. For example, a client from Spain has his address and only partial VAT number (without the country code) displayed. Are client VAT numbers being verified at all? The invoice only includes my name, no address, no VAT number.

 

As the invoices are not usable anyway, this might be good actually - I imagine I could get in trouble with the local tax authorities if someone uses the invoice you provide. If only my name is being displayed - it could be someone else with the same name.

 

Only thing I can think of is adding something along the lines of "Invoice is not issued by Company X (me) and is not legal. Please use the invoice Company X sent you directly." on the Settings page where I can add an optional address to be displayed on the invoice you issue.

kochubei_valeria
Community Manager
Valeria K Community Manager Member Since: Mar 6, 2014
7 of 40

Hi Gunta,

 

Could you please PM me the name of the client from Spain you are referring to? I'd like to check why their address doesn't show. I checked a client from Great Britain as an example and their address and VAT show properly.

~ Valeria
Upwork
sarkanyjudo
Active Member
Judit S Member Since: Jun 30, 2016
8 of 40

Hi Valeria,

 

I have a similar issue, although there is an address of my German client on the invoice, but no VAT number at all. 

 

 

kochubei_valeria
Community Manager
Valeria K Community Manager Member Since: Mar 6, 2014
9 of 40

Hi Judit,

 

The client will need to enter their VAT number to enable VAT invoicing. They can do it in their Settings> Company Contact.

 

Screenshot_13.png

~ Valeria
Upwork
sarkanyjudo
Active Member
Judit S Member Since: Jun 30, 2016
10 of 40

Thanks Valeria!

 

I'll contact my client and see what happens.

TOP KUDOED MEMBERS