What invoice is valid?

[748b9dd0]

Hi

new here.

As far as I see, after a payment done on Upwork to hire a freelancer, as Client, we receive one invoice.....

But later appears something called "Credit Memo" and later a new invoice, automatically generated by Upwork on behalf of the Freenlancer.

So, my question is: The invoice of Upwork to the Client keeps valid? Both are valid? Or only one of them?

Hoping for good news, since already found old topics, explaining/complainning: In most countries in Europe, a simple document saying invoice, from an individual it is not a valid tax document. If Upwork wants to say "the Freenlancer" needs to issue invoice, this simply does not work in Europe, since most of people are not and wont be registered as businnes. But Lda/LCCcompanies, we can not make payments without an invoice.

We must receive an invoice from whom received the payment/made the debit in our account (and this party issue their invoices to the Freenlance).

Sorry for the advance though, I really hope at the end, there is a way to get a valid invoice from Upwork directly.

[g_vasilevski]

Hi Nuno,

When you're hiring freelancers on fixed-price contracts you will have one invoice for funding the milestone and one for paying your freelancer. You can learn more about this in this Guide. 

The credit memo you're referring to is because the freelancers have issued a refund for the payment you have issued to them. 
To learn more about invoices and transactions, check out this Help Article. 

[748b9dd0]

Hi,

thanks for quick reply.

The credit memo was registered before any refund. However, if I understood well on the links provided, the credit memo is like an internal transfer on Upwork.

Resuming and most important: The first invoice, Upwork - to client, remains valid and there is no credit note, in a normal process. CorrecT?

[BojanS]

Hi Nuno,

That is correct. Official invoices are created for all billings for freelancer contracts and can be accessed via the Transaction History report as described in this help article.

Unfortunately, we're unable to provide specific accounting or tax advise and recommend that you talk to your tax adviser about a specific way to report Upwork payments to your local tax authorities.

Thank you!