Name on a received invoice?

[#1]

I have a quick question on the invoices you receive from Upwork. As a client, when receiving an invoice from Upwork whose name and address is shown on that invoice? Is it Upwork itself or is it the name and address of the freelancer that was hired by you? So who are you paying according to the invoice, Upwork or the freelancer?

[#2]

Understood! Really good. What if I ask my client to send me the invoices they get from Upwork? Would this work?

[#3]

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@Edgar F wrote:

Understood! Really good. What if I ask my client to send me the invoices they get from Upwork? Would this work?

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Depends on what the invoice looks like. In the past this was no good as the invoices issued were not compliant to EU regulations. If they now correctly display the name and address of both parties that should work. 

[#4]

I for one don't want Upwork to issue invoices on my behalf. At all.

What I would like to see is Upwork providing a standard invoice template in my profile settings, which I then can amend to include a client's VAT number when necessary.

That way, I have access to the invoices I need for my own tax declaration, and I have control over what's being sent to MY clients. 

The email says: 

• Separately, if your client also has a VAT number and is located in a different EU country than you, Upwork will print “VAT Reverse Charged” on the invoice from you to your client.
• If you provide services to a client in the same EU member state, you should consult your tax advisor to determine if you must separately send a VAT invoice to your client.

I have said this before - I don't have access to the info I need to properly invoice a client. I want and need access to that client information which only Upwork is privy to. Once Upwork makes it available, I shall happily send my own invoices and make sure they comply with my country's tax laws. But I want there to be ONLY ONE invoice in my name!

I am already chasing clients to close contracts - I don't even want to contemplate chasing and asking them for the data I need to issue a valid invoice...

And what I really don't want is Upwork sending something on my behalf, without having access to it, and then being asked to make sure I send an additional invoice to adhere to national/EU tax laws.

[#5]

Aaah - we now have a nice FAQ.

https://community.upwork.com/t5/Announcements/Frequently-asked-questions-about-VAT-for-EU-freelancer...

With some interesting answers, such as:

"8. How are you charging VAT on my behalf?

We’re not. VAT is being assessed on services provided by us, not on services you provide your clients."

Combined with the fact that I never get to see the invoice that is sent on my behalf, or the VAT-number of the client, that kind of closes the door for me. For now, I will have to decline all offers from clients located in the EU. Simply because there seems to be no way I can compluy with the tax laws that apply here.

Still not sure whether I want to go through the hassle of filing the invoices for the VAT charged on Upwork's commission, as my bookkeeper also doesn't work for free.

[#6]

I have to write some invoices for Upwork jobs and found out that now there isn't any document for the freelancer to print that shows what you have earned by a specific job. When I did it the last time (in August) there was at least a kind of receipt that showed the amount of money I have received for the job. This document I could print. When did this disappear? Now I can only see on the screen that I have received money from Upwork.

[#7]

Hi Margarete,

Would "Earnings by Client" report serve that purpose?

[#8]

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@Valeria K wrote:

Hi Margarete,

Would "Earnings by Client" report serve that purpose?

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Hi Valeria, definitely no. (I do not want to open the discussion again that the freelancer needs a copy of the invoice sent to the client this time). I have to write an invoice for each fixed price job (applying VAT where necessary) or per week for hourly jobs. I have to prove that I have received the money and I have to add the address of the client as well as description and date of work. 

[#9]

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@Valeria K wrote:

Hi Margarete,

Would "Earnings by Client" report serve that purpose?

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Valeria,

I'll second Magarate in what she said. Here are the requirements in Europe: http://ec.europa.eu/taxation_customs/taxation/vat/topics/invoicing_en.htm#what_information

[#10]

Valeria, the legal requirements seem blindingly obvious, as previous posters have provided links to government web sites.  Can you explain why it is so difficult for UW to provide compliant documents? And, why this has been an ongoing discussion point for so long with so little action from UW?

[#11]

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@Dave E wrote:

Valeria, the legal requirements seem blindingly obvious, as previous posters have provided links to government web sites.  Can you explain why it is so difficult for UW to provide compliant documents? And, why this has been an ongoing discussion point for so long with so little action from UW?

process starting w

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At the latest when the MOSS process begins with Upwork's invoices for the service, the European tax authorities will be very interested in the invoices for the work the service refers to. And each freelancer who cannot show a legal invoice for the job will get into serious troubles (for example can be accused for money laundering or fiscal fraud).

[#12]

Joachim I see that you are very helpful could you explain me how you deal with invoices.

Because now I can put that i give an invoice to Abrakadabra LTD and thats it I dont have more data about client.


And clients telling me thay get invoices from upwork, so they don't need to give their data to me.


How this is working for you?


Best Marek

[#13]

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@Marek A wrote:

Joachim I see that you are very helpful could you explain me how you deal with invoices.

Because now I can put that i give an invoice to Abrakadabra LTD and thats it I dont have more data about client.


And clients telling me thay get invoices from upwork, so they don't need to give their data to me.


How this is working for you?


Best Marek

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Hi Marek,

So far I have had no problems with clients in Europe providing their details. They are interested in receiving legal invoices and my VAT ID too. Some US companies have been difficult though. In these cases I treat Upwork's transaction report for the specific job as a receipt from an unknown entity. Make a screen shot of it and treat it just like I'd treat a receipt from a taxi. The drawback is, that my tax office then views it as revenue generated within Germany and tells me the price includes 19% VAT. That's why I increased my prices by 19% after moving to Upwork from Elance. I'm now lowering them again, as clients not willing to provide the details are so rare.

[#14]

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@Marek A wrote:

And clients telling me thay get invoices from upwork, so they don't need to give their data to me.
_________________________________________________________________________________________

Two clients of mine are still considering UpWork as the only contracting party (as the reseller of freelancers' work).

One of them is even deleting freelancers' names from receipts and adding the oDesk EIN manually

I have to say that I'm quite surprised to see so few clients commenting on this thread.

Is UpWork keeping them informed of the latest changes?

[#15]

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@Sara P wrote:

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@Marek A wrote:

And clients telling me thay get invoices from upwork, so they don't need to give their data to me.
_________________________________________________________________________________________

Two clients of mine are still considering UpWork as the only contracting party (as the reseller of freelancers' work).

One of them is even deleting freelancers' names from receipts and adding the oDesk EIN manually

I have to say that I'm quite surprised to see so few clients commenting on this thread.

Is UpWork keeping them informed of the latest changes?

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Hi Sara,

A continuing problem. We must not forget European clients were receiving useless invoices. Only now is Upwork changing this, if the freelancer confirmed that his address details may be printed on the invoice! And, just like many freelancers assumed that Upwork is their contract partner, so did and do clients. 

[#16]

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@Joachim M wrote:

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Hi Sara,

A continuing problem. We must not forget European clients were receiving useless invoices. Only now is Upwork changing this, if the freelancer confirmed that his address details may be printed on the invoice! And, just like many freelancers assumed that Upwork is their contract partner, so did and do clients. 

____________________

And it could happen that the EU tax authorities will ask Upwork to pay the 19% VAT for the freelancer's work.

[#17]

He he he... I've just found this among the latest job postings:

We are an Italian company and we use Upwork to hire freelancers . I need a simple ONLY ANSWER to the question: since invoices for download from upwork not go well, because without any reference to the author of the performance ( private / business ) it's Upwork, how do I account for this performance received from freelancers and foreign companies ?

They make me want to hug them...

[#18]

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@Sara P wrote:

He he he... I've just found this among the latest job postings:

We are an Italian company and we use Upwork to hire freelancers . I need a simple ONLY ANSWER to the question: since invoices for download from upwork not go well, because without any reference to the author of the performance ( private / business ) it's Upwork, how do I account for this performance received from freelancers and foreign companies ?

They make me want to hug them...

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Yes, yes, a very old threat, however, nothing changed up to now. The latest invoices to my client in Europe from Upwork only inluded my name, no hint that I am either a private person or a business, no VAT-Id (that I have provided), no country, no address (I could live on the Mars or be an phantom) and no VAT applied or mentioned that is due in my case and has to appear on the invoices because this 19% VAT belong to the German state and not to me.

[#19]

Hi Margarete,

By going to your contact info under settings, you will find at the bottom an option to add an address to be displayed on your clients invoices. As for your VAT-ID displaying, let me check on this and I'll let you know. 

-Lena

[#20]

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@Lena E wrote:

Hi Margarete,

By going to your contact info under settings, you will find at the bottom an option to add an address to be displayed on your clients invoices. As for your VAT-ID displaying, let me check on this and I'll let you know. 

-Lena

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Hi Lena, I have checked this and added this option. This was my mistake. As today I have seen the invoices for the first time (and only because my client provided the copies to me) I was not aware of the problem before. Moreover, I have provided my VAT-Id from the beginning and it has been approved by Upwork. So it should have appeared on the invoice anyway. Anyway, with or without my complete address, with or without my VAT-Id Upwork's "invoice" is not an invoice in Europe. For anybody in Europe who pays his taxes and has a legal business this is just a piece of paper and does not have any value for the tax authorities.

[#21]

..

[#22]

Lena, "display address to client" option solves only the problem on client's side. On freelancer's side, we still need the client's address for very similar legal reasons. Otherwise we have to pay around 18%-19% VAT for payments coming from international client's although we were not supposed to pay. This is just because you don't provide us client's address. It makes profit margins unable to survive here on Upwork.

[#23]

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@Guney O wrote:

Lena, "display address to client" option solves only the problem on client's side. On freelancer's side, we still need the client's address for very similar legal reasons. Otherwise we have to pay around 18%-19% VAT for payments coming from international client's although we were not supposed to pay. This is just because you don't provide us client's address. It makes profit margins unable to survive here on Upwork.

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We have explained this a thousand times and it does not interest anybody. However, I think it is only a question of time when the EU-tax authorities and probably from other countries as well will ask Upwork for the invoices they have sent to the clients for the the freelancer's work. They already receive all names of the freelancers with the service fee invoices and the service fee invoices refer to the invoice that have been sent to the client.

[#24]

HI Margarete,

To clarify the VAT charge that we access is only on the service fee, and you should see that in your service fee invoices which will show your name, address and VAT ID. 

What you are inquiring is for your VAT ID and address to be displayed when an invoice is sent to a client, right? I shared in another post that there is an option to add your address to client invoices. I checked with the team on the option to add your VAT ID onto the clients invoice and this is not available. 

-Lena

[#25]

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@Lena E wrote:

HI Margarete,

To clarify the VAT charge that we access is only on the service fee, and you should see that in your service fee invoices which will show your name, address and VAT ID. 

What you are inquiring is for your VAT ID and address to be displayed when an invoice is sent to a client, right? I shared in another post that there is an option to add your address to client invoices. I checked with the team on the option to add your VAT ID onto the clients invoice and this is not available. 

-Lena

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Hi Lena,

Yes, I know this and here Upwork makes a big mistake. If Upwork would provide proper invoices to clients and freelancers as well, in many cases those with a VAT-ID could apply reverse charge instead of detracting 19% VAT from the earnings and handing it over to the tax authorities.

By the way, the problem was discussed here in December:

https://community.upwork.com/t5/Freelancers/VAT-details-missing-on-service-invoice/m-p/144517#M77411 

Upwork up to now only provides invoices with VAT added for those without a VAT-ID. Those freelancers with a VAT-ID - who are eligible for reverse charge - just received the same invoices like before. So the reverse charge system has not been applied to their service invoices. Changes have been announced as well as amended invoices for December. Still nothing has happened. It is already too late for 2015, my invoices had to be handed over to my tax consultant.

[#26]

Hi Margarete,

Im sorry but Im not understanding what you mean by this statement:

"So the reverse charge system has not been applied to their service invoices. Changes have been announced as well as amended invoices for December. Still nothing has happened. It is already too late for 2015, my invoices had to be handed over to my tax consultant."

VAT-IDS have been retroactively added to your invoices on service fees. If you got to your reports> transaction history and click on an invoice for a service fee you will see your VAT ID as well as the VAT ID of Upwork.