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mathgirl
Community Member

Italian VAT is it invoiced to the customer when working with an Italian freelancer?

Hello,

 

could you please indicate if the Upwork invoice for an Italian client who hired an Italian freelancer will be charged with 22% Italian VAT?

Or the VAT is included in the hourly price of the freelancer, therefore it's not my problem? 
Thank you.

6 REPLIES 6
spectralua
Community Member

Upwork didn't handle your VAT operations with client, you must do it yourself. One sending indicated in contract amount, other receiving it (excl Upwork fee).

6bfcdaf8
Community Member

It is unfortunately your problem. If we take the upworks rule of "no payments outside the platform" then you'll have to propose a rate to your client that allows you to cover VAT.  It really doesn't make much sense to find a local client on an overseas platform. 


 wrote:

It really doesn't make much sense to find a local client on an overseas platform. 


There are US-only and UK-only job feeds on Upwork, so obviously, not everyone wants to work with people "overseas". Most of my clients are in my own country, which makes total sense for me and for them. You still need to comply with tax laws in your country regardless of where your clients are located.

mathgirl
Community Member

Thank you for the answers.

Just a couple of notes: it would NOT be my problem (I am the client in this case). 

At times, depending on the nature of the job, you might be looking for somebody "local". Think about localization, SEO.

Cheers,
Milena


 wrote:

Thank you for the answers.

Just a couple of notes: it would NOT be my problem (I am the client in this case). 


That's correct; as a client, you do not pay VAT on top of a freelancer's hourly rate; if a freelancer's services are subject to VAT, they need to include this in the price that they quote to clients. It's not up to you to figure out if your freelancer is complying with local tax laws or not.

 

I'm not sure how things work in Italy, but in the UK, freelancers only need to register for VAT if their earnings are over £85,000, and the vast majority of Upwork freelancers aren't making anywhere close to this amount, so they wouldn't need to worry about it. 

alif766
Community Member

Upwork is supporting in a systemtic manner just as machines. There shuld be some options for taxes too,  while proposal submitting. 

 

Similarly, clients are contacting to member to contact on privately "via telegram”. Why is it happening?

 

Hussain

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