Hi guys, I’m new to Upwork and I’m trying to figure out how to invoice my clients.
My accountant says that if Upwork invoices my clients for the total amount they have paid, I’m supposed to send an invoice to Upwork for the sum I’ve actually received, without considering the 20% fee.
Anyone from Portugal who can confirm this?
Yeah, I also need help on this. I think I've been doing it wrong and need to know how you guys are reporting your taxes, and when, since this is not a "normal" way to work for freelancers, and with all the "forms" on the site, I'm kind of lost.
As a freelancer with activity open in Portugal, I'm doing this for the past 2 years (without any problem and after talking to 3 different local accountants):
I have my professional VAT number associated to my Upwork Account. I invoice (recibo verde eletronico) the full payment that client pays (fees included) on my "Portal das Finanças". Then, I declare the Upwork fees as expenses of my professional activity (with that, I don't pay taxes on the whole amount).
The invoice needs to be done for the client (not to Upwork, because Upwork is not our client, but the service provider). We need to issue our invoices to our clients. And the invoices need to show the same amount as the invoices Upwork issued (available at Settings > Get Paid > View Payments / Transaction History).
More about our taxes in Portugal: https://www.nomadismodigital.pt/freelancer-em-portugal-impostos/
Thank you for your reply.
How about the VAT payments? I know it depends on how much you earned the year before, but below 10k€ I don't have to pay VAT, correct?
Regardind the Social Security payments, they have to be made every month, right?
Thanks for your help
Yes, below 10k you don't need to pay IVA/VAT. And also, below 10k you don't need to make the "retenção na fonte da segurança social": you only need to pay the Social Security with your annual taxes in April/May.
If you have more than 10k/year, you need to pay your Social Security monthly.
Thank you for your post, it's really helpful.
Could you please share with us what do you insert in the field of the "NIF" of the Client? Do you ask for this information to each of your clients?
And what do you do about the IVA?
Thank you in advance