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Invoice of the Payment processing fee

Active Member
Bence U Member Since: Dec 20, 2018
1 of 8

I am a registered business in the EU, and I already entered my EU VAT number into my Upwork account.

I have a question regarding the 2.75% payment processing fee Upwork will charge me as a client.

I read somewhere that the Upwork company has an EU VAT starting with "EU", since it is a US company which registered in the EU for VAT purposes. But I don't see the Upwork's EU VAT number on the invoices/receipts at all, is it by designs? If you have the EU VAT number, why don't you display it on the invoices?

 

Second question, I think I should receive a separate invoice (and not a receipt) which includes only the 2.75% charge as the invoice amount, and nothing else.

 

Third question, isn't this payment processing fee a service I am buying from a US company as an EU company? If so, then the term "VAT reverse charged" should appear next to the payment processing fee, or not? I see the term "VAT reverse charged" only on the final invoice which was issued by the freelancer, but it is without the payment processing fee.

But the payment processing fee is not subject to "VAT reverse charged"?

Moderator
Avery O Moderator Member Since: Nov 23, 2015
2 of 8

Hi Bence, 


Sorry for the delay in getting back to you as I had to look into this with the team. The Customer Support Team will reach out to you with more information about your query. 


-Avery
Untitled
Active Member
Jurgen A Member Since: Oct 10, 2019
3 of 8

The Customer Support Team will reach out to only that person?

Every customer in the EU has this question. You better formulate an answer here.

Or for some reason, you can´t, please answer me.

 
Moderator
Vladimir G Moderator Member Since: Oct 31, 2014
4 of 8

 

Hi Bence,

 

Thanks for posting these great questions in the Communty.

 


Bence U wrote:

I am a registered business in the EU, and I already entered my EU VAT number into my Upwork account.

I have a question regarding the 2.75% payment processing fee Upwork will charge me as a client.

I read somewhere that the Upwork company has an EU VAT starting with "EU", since it is a US company which registered in the EU for VAT purposes. But I don't see the Upwork's EU VAT number on the invoices/receipts at all, is it by designs? If you have the EU VAT number, why don't you display it on the invoices?

 

Second question, I think I should receive a separate invoice (and not a receipt) which includes only the 2.75% charge as the invoice amount, and nothing else.

 

Third question, isn't this payment processing fee a service I am buying from a US company as an EU company? If so, then the term "VAT reverse charged" should appear next to the payment processing fee, or not? I see the term "VAT reverse charged" only on the final invoice which was issued by the freelancer, but it is without the payment processing fee.

But the payment processing fee is not subject to "VAT reverse charged"?


1. I'd like to clarify that Upwork doesn't currently charge VAT on client payments to freelancers or on payment processing fees. Upwork's VAT number isn't displayed in your invoice by design. The "VAT reverse charged" stamp will appear on invoices from the freelancer in case you as a client provided your VAT number, but that designation isn't related to the payment processing fee.

 

2. To your second question, the 2.75% has a receipt instead of an invoice because it is a per-payment fee and not necessarily associated with a particular invoice. You pay the payment fee for the payment you are making to the freelancer. They are not separated as it would add more confusion. We already shared similar feedback to the one you shared here with our Product team.

 

3. Please see number 1.

 

Let us know if you have other questions and we'll gladly follow up to advise or assist you!

Active Member
Ricardo F Member Since: Nov 7, 2019
5 of 8

How can we get an invoice from upwork fee? It´s also an expense that must be reflected on the books (P/L report).

Moderator
Bojan S Moderator Member Since: Mar 9, 2018
6 of 8

Hi Ricardo,

 

Please go to your Reports> Transactions and click the Ref ID number on the right side next to the transaction you'd like an invoice for. You'll see the pop-up with the link to View Invoice. Here is a help article for reference.

 

Thank you!

~ Bojan
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Active Member
Jurgen A Member Since: Oct 10, 2019
7 of 8

Thanks !

Active Member
Ricardo F Member Since: Nov 7, 2019
8 of 8

Thanks mate!

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