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UpWork invoices are not compliant for EU

emarek11
Active Member
Marko B Member Since: Apr 2, 2021
1 of 11

Hey everyone,

I am a EU based client and I hired someone for a certain project. Project is proceeding quite well. Problem which I have is that my Finance department is not satisfied with invoices which we receive from UpWork. For hourly based work each week we receive 3 pdfs:
- receipt, seems fine, it contains total amount for processing fee and actual work

- invoice for payment processing fee (3%), which is okay (screenshot attached)
- invoice for actual work and this one is not okay (screenshot attached)


The "from" section is populated with personal data (name, surname, address) of a guy which I hired via UpWork. This it just wrong. This is an invalid invoice under our legislation and I can not submit it further. Invoice comes from UpWork and it is paid to UpWork meaning that "from" section should be populated with their data. Just the same way as it is in processing fee invoice.

I bet I am not the only one with this problem. I am just wondering how you guys solved this?

Thank you for any answer!
Marko

luiggi_rosado
Moderator
Luiggi R Moderator Member Since: Jul 3, 2020
2 of 11

Hi Marko, 

 

The information that's being shown in the invoices is correct and working as designed. The freelancer that you hired via Upwork is the one providing the services you paid for and Upwork works as the platform that allowed you to connect with that person. You can check this help article and section 6 of the TOS to learn more. 

 

Thank you.

~ Luiggi

Untitled
emarek11
Active Member
Marko B Member Since: Apr 2, 2021
3 of 11

My freelancer does not have a legal business entity. He is a phisical person and my company can not accept an invoice which comes directly from him. This is exactly what UpWork does, issues invoices in freelancer's name while actually collecting money.  Sadly this kind of invoices are invalid under our legislation and would be matter of investigation. Most likely resulting in some kind of fine for my company and extra taxing my freelancer. Let me ask you again. Is there a way that all invoices which I pay to UpWork actually comes from UpWork? Please a yes/no answer.

vladag
Community Manager
Vladimir G Community Manager Member Since: Oct 31, 2014
4 of 11

Hi Marko,

 

I can confirm the information Luiggi provided is correct. We can't provide legal advice but you can consult a legal adviser to discuss using the information available in Upwork invoices to edit and create your own invoices in case the current ones do not meet your requirements.

I'd like to invite other experienced freelancers from Slovenia and EU to follow up and share their experience with reporting their earnings on Upwork.

Untitled
emarek11
Active Member
Marko B Member Since: Apr 2, 2021
5 of 11

What do you mean by "edit and create your own invoice". Is there a tool here on UpWork platform where I can set what is written under "from" section or you meant that I should recreate an invoice from scratch for myself using the information from original invoice?

 

This thread is not about how freelencers report their earnings. It is about what is written on the invoice which UpWork charges to the client (my company in this case).

colettelewis
Community Guru
Nichola L Member Since: Mar 13, 2015
6 of 11

I had one client from Spain who insisted that I create a separate invoice, which I did (as an autoentrepreneur in France, I do not have to charge VAT). I sent both invoices to the client. There was no feedback on them, so I imagine they were correct. I haven't had any problems with Upwork invoices and my own tax returns in France. 

 

If your company is also your client, are you hiring yourself? 

tta192
Community Guru
Andrei T Member Since: Aug 30, 2016
7 of 11

Nichola L wrote:

I had one client from Spain who insisted that I create a separate invoice, which I did (as an autoentrepreneur in France, I do not have to charge VAT). I sent both invoices to the client. There was no feedback on them, so I imagine they were correct. I haven't had any problems with Upwork invoices and my own tax returns in France. 

 

If your company is also your client, are you hiring yourself? 


In cases like this, you should make it very clear to the client that the new invoice is a replacement of the original one, and they should not use both versions in accounting. Otherwise you risk having issues yourself. Better add a note on the new invoice stating that the old invoice is void.

 

colettelewis
Community Guru
Nichola L Member Since: Mar 13, 2015
8 of 11

Andrei T wrote:

Nichola L wrote:

I had one client from Spain who insisted that I create a separate invoice, which I did (as an autoentrepreneur in France, I do not have to charge VAT). I sent both invoices to the client. There was no feedback on them, so I imagine they were correct. I haven't had any problems with Upwork invoices and my own tax returns in France. 

 

If your company is also your client, are you hiring yourself? 


In cases like this, you should make it very clear to the client that the new invoice is a replacement of the original one, and they should not use both versions in accounting. Otherwise you risk having issues yourself. Better add a note on the new invoice stating that the old invoice is void.

 

_______________________

 

As I said, I have had no problems. And I had no problems with the one client who asked for a separate invoice.  


 

tta192
Community Guru
Andrei T Member Since: Aug 30, 2016
9 of 11

Unfortunately, Upwork is not the seller - the freelancer is. The invoices are created on the platform just for convenience. But you're buying the services from the freelancer, and whatever financial information he/she provided will be added on the invoice.

Sometimes the automatic invoices are not compliant and/or incomplete, as in the situation you describe. The freelancer is responsible to provide you the correct version. But if they don't have the proper documentation / entity / etc you're stuck with the automatic invoices. But those are usable too, just tell your accountant that's all you have.

 

To avoid such issues in the future, check with the freelancer prior of hiring whether they're able to provide proper invoices. Just to make sure, you can make a very small bonus payment on the first week and wait for the invoice; if it's not what you need then close the contract and find someone else.

emarek11
Active Member
Marko B Member Since: Apr 2, 2021
10 of 11

Nichola, no, I am not hiring myself, why would I do that? Please read the thread again. I guess you didn't understand everthing. Take a look at the attached invoice. All I need is "from" section to be populated with UpWork's data instead of my freelancer's personal data. That's it, nothing else.

 

Andrei, yes, freelancer provides services, but payment goes to UpWork therefore invoice should be from UpWork and not from freelancer.

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