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rezawordwork
Community Member

EU double invoice: Upwork fee?

Hi all,

 

A second question related to the second invoice I make for my country's (Italy's) tax system. Should I mention the Upwork fee in it? That seems unnecessary, since I'm not charging my client the Upwork fee myself; or at least, he doesn't have to pay it to me. The tax system would record this as my earnings.

 

Thanks again!

Robin

4 REPLIES 4
jr-translation
Community Member


Robin R wrote:

Hi all,

 

A second question related to the second invoice I make for my country's (Italy's) tax system. Should I mention the Upwork fee in it? That seems unnecessary, since I'm not charging my client the Upwork fee myself; or at least, he doesn't have to pay it to me. The tax system would record this as my earnings.

 

Thanks again!

Robin


You receive a seperat invoice from UW for the fees. You use these invoices to proof your business expenses. Your clients do not care about your expenses and do not pay them.

 

Once again check with your local tax office what is required. Did you provide all inforamtion that is needed for the invoice created by Upwork? There is usually no reason to create a second incoice and if you do make sure you refer it to the UW invoice. Otherwise you might pay the taxes for that project twice.

 

BTW: Do not start a new thread for each quaestion.

Thank you for your response, Jennifer, and please excuse my mistaken use of the forum. I am planning to make clear references to the Upwork invoices, because my Italian tax office requires me to chronologically number my invoices; the Upwork ones don't follow my invoice numbering system. There are several other reasons why it doesn't suffice for my tax office.

I have now come to understand that I will be paying tax on a fee I have to pay Upwork: for instance, I work at 17$/h, I work 2 hours, so I am paid, in theory, 34 dollars. 20 Percent fee would make 6.8 dollars for Upwork, but if I bill the client for 34 dollars, I will pay my +-30% tax rate on a sum I will not be keeping in full. I have read somewhere that the invoice should technically not be sent to the client, but to Upwork, but after a lot of research cannot find any verification. I will try and hunt down other Italian Upworkers.
Thanks again.

Up, Robin. Have you found anything? This is a problem I will discuss tomorrow with my accountant.


Robin R wrote:

Thank you for your response, Jennifer, and please excuse my mistaken use of the forum. I am planning to make clear references to the Upwork invoices, because my Italian tax office requires me to chronologically number my invoices; the Upwork ones don't follow my invoice numbering system. There are several other reasons why it doesn't suffice for my tax office.

I have now come to understand that I will be paying tax on a fee I have to pay Upwork: for instance, I work at 17$/h, I work 2 hours, so I am paid, in theory, 34 dollars. 20 Percent fee would make 6.8 dollars for Upwork, but if I bill the client for 34 dollars, I will pay my +-30% tax rate on a sum I will not be keeping in full. I have read somewhere that the invoice should technically not be sent to the client, but to Upwork, but after a lot of research cannot find any verification. I will try and hunt down other Italian Upworkers.
Thanks again.


Why don't you create an excel sheet with the upwork invoice numbers that are sent to clients and number them consecutively for tax reference, so you can also include invoices to other than upwork clients. The upwork fee is a business expense, and you surely have others that decrease your earnings. You only pay income tax on your net earnings.

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