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Access to the invoice send to the client

jmeyn
Community Guru
Joachim M Member Since: Mar 23, 2015
11 of 16

@Cristian-Adrian F wrote:

Quang,

 

Now I have a better understanding of your issue: the thing is that in EU we have to apply the VAT rule when both parties are from the European Union. The seller, meaning the freelancer can be worldwide, hence Upwork is the one who "gives" the money to the freelancer, and Upwork resides in Mountain View, USA and not part of EU. So, after the law the freelancer and you as a buyer aren't compelled  to fill in any declaration, as far as I know, maybe only the standard invoice without any VAT number.

 

Consequently, you, as a buyer here, you are funding for a company that's outside EU, so if there's any law that inforces filling a declaration for that, you should pursue Customer Support, otherwise no (in my country you don't have to pay any fee for services outside EU) .


It is irrelevant where Upword is located. Upwork is not the client. Upwork is merely a middleman. 

 

https://community.upwork.com/t5/Clients/Name-on-a-received-invoice/m-p/125113#U125113

 

jmeyn
Community Guru
Joachim M Member Since: Mar 23, 2015
12 of 16

@Stephen B wrote:

My accountant (in Ireland) is happy with me only being able to prove annual earnings (payments) from Upwork (annual report). Don't take that as gospel, but it seems similar to the above poster's situation.


Hopefully your accountant is aware that Upwork is not your client. With clients from within the EU certain VAT regulations need to be taken into account.

 

See the thread: https://community.upwork.com/t5/Clients/Name-on-a-received-invoice/m-p/125113#U125113

 

stephenbrightman
Community Guru
Stephen B Member Since: Dec 4, 2012
13 of 16

But is that not only if the freelancer is registered for VAT?

jmeyn
Community Guru
Joachim M Member Since: Mar 23, 2015
14 of 16

@Stephen B wrote:

But is that not only if the freelancer is registered for VAT?


No.

 

Please don't confuse VAT registration for a VAT ID with VAT exemption. 

 

VAT exemption: You don't charge VAT and can't deduct VAT you paid

VAT registration: You don't charge VAT to clients that are also VAT registered within the EU but not in Ireland i.e. you still charge VAT to Irish clients if you are not also exempted. VAT registered suppliers from within the EU, but not in Ireland, won't charge VAT to you.

 

http://ec.europa.eu/taxation_customs/taxation/vat/topics/invoicing_en.htm

 

Have a word with your accountant making it clear that Upwork is not your client but merely a middleman.

 

stephenbrightman
Community Guru
Stephen B Member Since: Dec 4, 2012
15 of 16

Hi Joachim 

 

Thanks for your as-ever detailed and helpful responses. Yes indeed, I mean exempt as in below the earning threshold. I'll show it to him anyway. 

jmeyn
Community Guru
Joachim M Member Since: Mar 23, 2015
16 of 16

@Stephen B wrote:

Hi Joachim 

 

Thanks for your as-ever detailed and helpful responses. Yes indeed, I mean exempt as in below the earning threshold. I'll show it to him anyway. 


Stephen,

 

With VAT exemption please take into account:

 

- You can't deduct VAT you pay from your earnings. 99% of my clients are located outside of Germany. Having a VAT ID I don't have to charge VAT to most of my European clients as they usually also have a VAT ID too. But, I can still deduct the VAT on anything I buy, e.g. petrol, office equipment etc. At the end of year my tax office returns this VAT to me, last year more than 1,000 Euros!

 

- Larger clients in Europe want to have a freelancer with a VAT ID (business outside of Upwork). Even the clients on Elance as Elance supports the VAT processes. Many of my larger clients I acquired because of me having a VAT ID 

 

Most of my clients are businesses though.

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