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Croatia private account to company, getting paid to companies bank account and whom to invoice,taxes

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Active Member
Matija B Member Since: Jul 16, 2015

Hi dear community and dear Croatian IT collegues,

 

I've been with oDesk and Elance now upWork for long time as a webdeveloper.

 

I have my freelancer account as a private person (Matija Baric). Last year I found a reliable client and we moved to full time contract that is why I opened my own company here in Croatia (since then I am invoicing them through my company directly we were not working on upWork they came to me by reference from other client), in the mean time they choose to switch business priorities and our contract will end next month.

 

So I am planning to return to upWork but I NEED and read BADLY NEED to get the earned money on upWork to my companies account opened in PBZ Privredna banka Zagreb (SWIFT: PBZGHR2X), as soon as I get the money to my company bank account, I obviously by the Croatian laws need to provide evidence for this payment which is again obviously invoice (on that invoice it must state my company name and OIB/Tax number not my private name!!!)

 

Now I would like to hear how the rest of you people with firms in Croatia and that you work over upWork how is the procedure regarding that, please be as much detailed as you can be, don’t miss a thing here

 

If you are let’s say “afraid” of writing it send me PM to my email **Edited for Community Guidelines**, please I need it like a water my entire family depends on it (don’t want to sound pathetic but I have a wife and 2 under aged daughters), you can take it as a cry for help (not for work but for legal advice).

 

**Edited for Community Guidelines**

 

Basically I would appreciate if some super accountant (because I believe we have similar laws) with this kind of experience could address me the right way.

 

Please Croatian entrepreneurs help me out here.

 

Yours truly,

Matija Baric

 

P.S. Please don't write generic/off topic answers or take this one as joke. Let this post be the wiki for all the Croatian people that are in same problem. Thanks in advance for taking it seriously.

17 REPLIES 17
Moderator
Vladimir G Moderator Member Since: Oct 31, 2014

Hi Matija,

 

Please note you can add your company's bank account as a withdrawal method if your name is associated with the account. Regarding the invoices, please check the information Joachim shared here and speak with your local tax advisor, preferably one who specialises in IT business.

 

Hopefully other freelancers from Croatia will follow up soon.

Active Member
Matija B Member Since: Jul 16, 2015

Hi Vladimir,

 

Thank you for quick reply.

 

1. So again and double checking I can add my companies bank account to my upWorks private account and issue a withdraw to my company bank account is that right? As you can see in this image it says clearly eSolutions d.o.o. (I belive in ENG version d.o.o. means Limited {Ltd.} I am writing d.o.o. for Croatian accountants to follow me easier) and then Matija Baric. (http://pasteboard.co/1Rr7eEJGe.png). Will that do for the withdrawal?

 

2. 2nd thing that is bugging me and that one is the big one, when I get the money to my company bank account I need to present to tax office and my accountant evidence for this payment, which is invoice, TO WHOM, HOW, PLEASE PROVIDE EXAMPLE of this invoice? Does it need to go to upWork, where or to client?!

 

3. The invoice issuer HAS TO BE eSolutions d.o.o. and not Matija Baric as private person, would upWork accept it. Where can I say that I own eSolutions on my private account on upWork? What steps do I need to take?

 

There is no problem with tax here in Croatia because this is service and export so by the tax law don't know which part but it's going to reverse charge. At least that was how I issues invocies to my current client in New Zealand.

 

Come ON Croatian accountants (or people who have GREAT and AWSOME accountants) need help here, you need to have clients as companies which successfully work over upWork and reside in Croatia. Come on please I beg you.

 

THANKS TO ALL REPLIERS IN ADVANCE.

Moderator
Vladimir G Moderator Member Since: Oct 31, 2014

Hi Matija,

 

Please add the bank account in question to your Upwork account and provide a bank certificate showing your name as an account owner in a support request. Our team will follow up and confirm the validity of your withdrawal method.

 

Regarding invoices, please refer to the thread I shared and to the information our team posted on the ticket you submitted last year on the same topic.

Frequent Visitor
Domagoj P Member Since: Dec 14, 2016

Hi Matija,

have you found any info? I am desperately trying to find some bookkeeper for handling things over UpWork, but noone in croatia has any clue what UpWork is Smiley Very Happy

Active Member
Matija B Member Since: Jul 16, 2015

Hi Domagoj,

 

I am running down some contacts that I got from a guy that worked for upWork and is here from Croatia, he will connect me with some accountat that knows more. Will keep you posted. Ping me on skype **Edited for Community Guidelines** or email **Edited for Community Guidelines** if I don't reply back should have some more information soon.

Frequent Visitor
Domagoj P Member Since: Dec 14, 2016

Hey Matija,

 

that's great news, thanks a lot!

Active Member
Goran M Member Since: Nov 17, 2015

I'm also looking for a reliable accountant/tax expert in Croatia, with experience in UpWork payments.

Any advice would be highly appreciated (also happy to receive recommendations in a private message).

Active Member
Matija B Member Since: Jul 16, 2015
​​
Hey, sadly no reliable information yet.the problem is obvious we can get the money to our company bank account (haven't done any withdraw yet but will soon di,but I added wire bank transfer to upWork so it should work fine). The problem is how to justify this amount or whom to send the invoice and this problem is keep coming back until I resolve this I can't withdraw the money because
​​
I'll be in big problems with my local Tax office. I found this information for our invoices:
 
Country code: Netherlands
VAT/GST ID: EU528002406
 
but when my accountant tries to create what is Croatian is so called "zbirna prijava" or "All Around Tax Application" looking like this: 
 
 
 
We can insert the above information VAT and Country but it won't pass so we contacted our local Tax office for check and they said that this VAT ID could be suspended or inactive so we are again and nothing.
 
I don't know if I was not clear the first time here, my entire business career depends on this information, not to say my life too, please someone help me out how to justify the withdrawan amount of money to my LTD (d.o.o.) company from upWork. Again I emphazie that I am willing to pay what ever it is needed to be clear and fair to tax authorities here in Croatia, of course I want to check the information first. There were already to much missleading information and I am getting to the point where I will need to withdraw the money from upWork.
  
Active Member
Goran M Member Since: Nov 17, 2015

I think most people working on UpWork in Croatia register a small business ("paušalni obrt").

It's much simpler than running an ltd company ("d.o.o." in Croatian), in terms of required bureucracy/accounting and the taxes are fairly low as well.

Most requirements are easy to meet for people working in IT, as long as the yearly income is less than 230.000kn.

Not sure if opening such a business entity would help resolve your situation.

 

When it comes to invoicing, the VAT ID you provided seems to be the UpWork's VAT ID.

From what I learned so far, it's much simpler to produce invoices directly for your customers (treating UpWork as the intermediary in the process).

See this discussion and Joachim M's answer about a similar problem in Austria

https://community.upwork.com/t5/Freelancers/VAT-number-and-address-of-Upwork-in-EU/td-p/179242/page/...

 

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