I am a freelancer working for my company. Until yesterday, I worked for my European company for more than three years with a verified VAT number. Yesterday I changed the details of my company in the profile. It is now an American company. Support hasn't solved the problem for over a month (I was planning to switch to a new US company earlier, but was forced to switch only yesterday). The problems are as follows:
1. The company data has changed for all invoices already paid.
2. VAT number has disappeared in all already paid invoices
3. The system has charged me VAT on already paid invoices (in which a verified VAT number was previously added)
4. My guess is that at the end of the year, the system will also send data on all transactions (1099-К) for the year to the IRS and I will have big problems with the law
5. New invoices for a US company contain VAT.
My clients are already downloading erroneous invoices without a VAT number to the new company (which have already been paid to the account of the old company with a VAT number) and I am already calculating the amount of potential fines that they and I will have to pay.
Support is silent for a month. Tickets are closed without any answers. I did not expect this from a large well-known company. This is all very strange and makes me look for alternatives. Up to this point, I have been very happy with our cooperation.
I apologize for the inconvenience this caused! It looks like you have an open ticket with our support team about this concern. I’ll go ahead and follow up with the team handling your case and you can expect to receive an update on your ticket as soon as possible.
Thank you for your patience.
Rest assured, our team is working on resolving this as soon as possible. One of our team members will update your ticket and will assist you further. Just to confirm, I have also escalated your concern to our team as well. Thank you.
No responses from developers for a 2 weeks, except for a message from a support specialist that the bug is taking place. I am looking at the invoices already paid and wondering how Upwork will pay the VAT that was taken from the American company? This is getting more and more interesting.
Hi Sergei and Felipe,
I have merged your posts into one thread so that we could keep the discussion and follow-up in one place.
I apologize for the delay in responding. Please rest assured that your issues have been escalated and the team is working to address your concerns. I'd also like to provide some additional information about the issue. There are two address fields that we encourage all users to actively update in their profile information in user settings: (1) your location address, located in the “Contact info” tab, and (2) your tax residence address, located in the “Tax Information” tab. The address listed on invoices reflects the information entered in the tax residence address fields. We are working to address your issues specifically and to make sure that the invoices reflect the appropriate information.
We will keep you updated about the progress via the support tickets.
Once again, I did not ask you about the address, by the way, this is the only thing that does not change in the already paid invoices. My question is about very specific things:
1. When tax information changes, the name of the company changes in all already paid invoices, in my case for 7 years of my work on the platform. The company that is written in them did not even exist yet. I registered it earlier this year.
2. When changing tax information, I delete the VAT number of my old European company and do not add the VAT number of the new American company, because there is simply no VAT in the USA. At the same time, very interesting things happen:
a. You have been charging my American company VAT for a month now (which will please the IRS very much at the end of the year).
b. In all already paid invoices of the old EU company, the old VAT number remains in the invoices, but you also additionally debited VAT from me despite the added VAT number. This will please the EU tax authorities.
For reference: you can only collect VAT from EU individuals. You cannot pay VAT for a European company using the MOSS system. Therefore, I pay VAT both for your commission and for your VAT on this commission, since it is an expense for me.
It turns out that you collect VAT from both an American company and a European company, which has VAT verified and it is correctly added to all old EU invoices. At the same time, a new American company is displayed along with the verified VAT number in the old invoices (by the way with old EU address). But my American company does not have a VAT number and address in EU.
I am no longer waiting for a solution to the problem. Let it stay yours. I have proof of correspondence, the fact of the appeal. If I will have any questions about my activity from the IRS or the European tax authorities, I will send them to you. Hopefully the letter from the IRS will make your developers work faster. I continue to pay VAT from my American company, let it be an additional expense. But it's very interesting how your company will report on it.
I agree with you about the importance of this issue and I can't stress enough how surprised I am with Upwork no taking this problem seriously.
The messages I have received from upwork support so far are quite strange. They are just asking me to wait until we get a response from 'the engineers'.
Is there someone with authority over 'the engineers' who can provide an estimated date of resolution about this problem?
Nobody seems to care about this problem. For several months nothing concrete has been written. The support only acknowledged the problem and promised to solve it without a deadline. It scares. Very strange for a large company that is listed on the stock exchange.
I'm wondering if the company's management reads this forum? An IRS problem can be costly for a company.
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