Dec 10, 2015 09:23:25 AM Edited Dec 10, 2015 09:38:39 AM by Valeria K
**edited for Community Guidelines**
Dec 30, 2019 06:09:28 AM by Ellen Bain P
Hi Ilaria, yes, although it is not an ideal one because it involves me paying tax on the whole amount paid by clients, including the Upwork fee. I raise an invoice in Italian and in euro (based on USD/euro rate of exchange published by Banca d'Italia for the payment date). When I send my quarterly returns to my commercialista, I attach the two invoices generated by Upwork (one for client's payment to me and one for client's payment to Upwork), together with my own invoice for each assignment. Good luck!
Ellen
Jan 28, 2020 05:26:41 AM Edited Jan 28, 2020 05:30:57 AM by Antonia B. V
Hi everyone.
UPWORK MODERATOR please PIN this answer to TOP. It is the final solution to the problem.
Here is also in english the same text courtesy to Upwork:
- The invoice that Upwork issues on its behalf IS NOT A VALID DOCUMENT FOR THE ITALIAN TAX SYSTEM, it does not follow a chronology and numbering as required by our tax regulations
- You must issue an invoice with the wording "reverse charge" with the dollar amount towards Upwork but you must also indicate the amount in euros with the exchange rate on the day you completed the service.
This are the coordinates for invoicing as you can also see them in your invoices Upwork builds for you
Upwork Global Inc.
2625 Augustine Dr, Suite 601
Santa Clara CA 95054
USA
VAT ID: EU528002406
- The invoice must be issued to Upwork and not to the end customer
- On the amounts that Upwork invoices them as costs that he charges for the service, you must integrate the VAT and pay it by the 16th of the following month. or if you never did it you can do the RAvvedimento operoso procedure to pay for the unpaid vat's
To find out the rates to use for the exchange dollar Euro see bellow the reccomended Bank of Italy link
Banca d'Italia - Tassi cambio
Jan 31, 2020 10:21:18 AM by Antonia B. V
Adding to the above post the info from the Agenzia delle Entrate
https://def.finanze.it/DocTribFrontend/getPrassiDetail.do?id={AF88D6EC-617C-4D75-9756-7040954C2514}
Pertanto, laddove gli acquisti da Paesi comunitari siano di ammontare inferiore ai 10.000 euro, l'IVA è assolta dal cedente nel paese di origine dei beni e, conseguentemente, il cessionario che applica il regime forfetario non ha l'obbligo di iscriversi al VIES, né di compilare gli elenchi riepilogativi Intrastat, salva la possibilità per lo stesso di optare per l'applicazione dell'imposta in Italia anche prima del raggiungimento della soglia.
ENGLISH for the text above:
Therefore, where purchases from EU countries are less than 10,000 euros, VAT is paid by the transferor in the country of origin of the goods and, consequently, the transferee applying the flat-rate regime has no obligation to register with VIES, nor to compile the Intrastat summary lists, without prejudice to the possibility for the same to opt for the application of the tax in Italy even before reaching the threshold.
Feb 6, 2020 08:28:57 AM by Michele William C
Thanks for this very clear explanation. Just one query... How to you send your invoice to Upwork - just upload it to the client contract? Upwork are not going to see it, let alone take any action to pay the reverse-charged VAT.... Or do you send it to them through snailmail?
Jun 23, 2020 05:16:11 PM by Alessandro B
Hello,
i have a question, where can i upload the invoice iussed to Upwork? Should i send it to an upwork mail?
Thanks,
Alessandro
Jun 24, 2020 08:27:00 AM by Ellen Bain P
Jun 25, 2020 03:44:35 PM by Alessandro B
According to Antonia B.V. post, The invoice must be issued to Upwork and not to the end customer.
How can i give it to Upwork? Is sure that i don't have to invoice the end customers?
Jun 27, 2020 03:05:53 AM by Ellen Bain P
I couldn't discover any way to invoice Upwork. If you do manage to, I'd be interested to know more about it.
Jun 27, 2020 09:17:31 AM by Alessandro B
I think the main problem for invoice upwork is that its VAN EU528002406 is not VIES compliant.
Jun 27, 2020 09:18:29 AM Edited Jun 27, 2020 09:19:07 AM by Alessandro B
How can we invoice upwork if its VAN is not VIES compliant?
Jan 8, 2021 02:25:17 PM by Deborah P
Hello, I'm based in Italy too as Partita Forfettaria.
My tax advisor says that I shall translate Upwork's invoices (full amount, no deduction of Upwork's quota or "passive invoices"whatsoever and include the currency in Euro (exchange rate of the emission date), but should NOT send such invoices to Upwork or anyone else, it's pointless. If they ever needed them, they would have asked us.
The invoices that we translate are just for our local book-keeping, income and tax calculation.
He has asked me to retain the same numbers and date of the original Upwork invoices.
I will present all this to him and see if he asks for anything else.
My suggestion is to sort all this out with a local tax advisor.
Jun 24, 2021 05:11:09 AM by Antonia B. V
@Deborah
About sending or not the invoices. Make sure you send the invoice at least to EU B2B customers. If they dont receive it they will make a self invoicing invoice autofattura indicating the data about you. And this will make big issues at the end of the day.
The invoice Upwork sends to the client is a proforma money request in our name. It is our duty to send to the final client the stamped and numerated invoice with all the elements, with the date of the effective money withdrawal and currency conversion for that speciffic dya ( not the day the client put money in escrow but the day we have the money in our bank, card, paypal etc)
Note: As long as money are held in escrow, escrow is not a bank and you are not in the posess of the money. So they became yours only in the day you have them in your accout in euro or dollars ( if paypal or other)
Mar 1, 2021 08:46:00 AM Edited Apr 13, 2023 10:58:49 AM by Andrea G
Hi Antonia,
I'm a freelance with no Partita IVA since I'm a beginner and I've just ended my first job.
I have two questions.
1-Does the invoice "Ricevuta per prestazione occasionale" have to include both the amount I received by the client and the fee I have to pay to Upwork?
2-Can I send the invoice at the email address: **Edited for Community Guidelines**?
Thank you so much.
Mary
Jun 24, 2021 04:45:51 AM Edited Jun 24, 2021 04:52:37 AM by Antonia B. V
Hi, I would like to share the legal solution and explanation with you. After a thousand rounds, consultations, fake online accountants (you know who I'm talking about), the truth came out.
Foreword: The freelancer has VAT. The guide below is not about those who don't have it.
What do we have to do? Bill to Upwork? NO!
How do we invoice the final customer?
INTRASTAT:
- necessary communication to be made for all invoices within 3 months that we issue to
EUROPEAN B2B customers.
I hope I have made it clear to everyone why and how.
I reiterate the concept that underlies the error of all of us (myself included): the invoice that Upwork issues to the customer for us is a simple pro forma, a request for payment without tax value, which precedes the actual invoice that we are. us to have to create it at the time of payment and reporting the date of the actual payment.
Thanks for your patience to read me
Antonia
Dec 8, 2022 09:43:58 AM by Rino L
Hi, I'm Rino a new Italian freelancer on Upwork.
Thank you for your very detailed explanation, I would like to know if I understood everything correctly:
So, once a job is finished, we receive the proforma from Upwork but then we have to make the "real" invoice in the customer's name (not in the name of Upwork), right?
I have an Italian VAT number open with Aruba, it is through this website that I invoice my customers, I would like to be sure I understand correctly and not make mistakes when I will have to declare income at the end of the year.
I hope you can answer me soon because not even my accountant is so knowledgeable about this type of market and I can't wait to get started.
Thanks a lot!
Rino
Jun 24, 2021 04:59:22 AM Edited Jun 24, 2021 05:00:04 AM by Antonia B. V
@Maria V.
Invoicing to Upwork will result in an error because you cannot make more than 1 mansion towards the same client and a ricevuta . More than one ricevuta for 1 client ( upwork) will result in a continuous employment situiation and it is illegal as no such contract exists between you and Upwork.
For sure you have to make the Ricevuta di pagamento towards the Final client and make sure you dont have a continuation of ricevute with any of them.
The ritenuta d'acconto you need to pay it all, not partially because your client ( if he is not italian) won't pay his share. Also he might also be italian and dont pay it "because reason"
Pay attention to repetitive mansions with the same client.
They cannot exists legally.
You can do a repetitive invoicing to a client only as long as you have a VAT.
hope it helps
Apr 1, 2022 01:53:18 AM by Armin Z
Hi,
Thanks for the clear answer.
I read the whole thread and still have some problems with this topic.
With the mandated digital invoice in force from this year, what is Upwork's email address to send the invoices?
And if we have to pay the VAT in the end, isn't it a better idea to remove our partita iva from the Upwork website, so they pay the VAT?
With regime forfettario we are not allowed to deduct VAT charges, so we leave it on Upwork's shoulder...
I read nomadidigitali article and many other websites but still have problem doing the stuff myself/or even finding a comercialista in Rome that actually wants to deal with Upwork. Can you please let me know if this is something I can do myself or definitely need a comercialista? I only work on Upwork and opened the VAT and genstione separate myself.
Thanks a million
Jun 14, 2022 01:31:37 PM by Antonia B. V
I will post you here something. Plkease read it carrefully as it is part of the contract you signed with Upwork.
This the italian translation of the piece located here
https://www.upwork.com/legal#relationshipwithupwork
Offriamo un mercato del lavoro: una piattaforma online in cui gli utenti possono trovarsi e connettersi tra loro. Non siamo coinvolti direttamente nelle tue negoziazioni o nella fornitura dei Servizi di Freelancer e non siamo parte di alcun accordo che potresti stipulare con altri Utenti. Sei l'unico responsabile per i tuoi contenuti pubblicati su Upwork e per i tuoi accordi con altri Utenti, incluso il controllo reciproco e le prestazioni ai sensi degli accordi.
I liberi professionisti sono responsabili del pagamento delle proprie tasse, dell'ottenimento della propria assicurazione e della conformità alle leggi e ai regolamenti applicabili.
Dec 9, 2022 01:58:18 AM by Rino L
Hi, I'm Rino a new Italian freelancer on Upwork.
I would like to know if I understood everything correctly:
So, once a job is finished, we receive the proforma from Upwork but then we have to make the "real" invoice in the customer's name (not in the name of Upwork), right?
I have an Italian VAT number open with Aruba, it is through this website that I invoice my customers, I would like to be sure I understand correctly and not make mistakes when I will have to declare income at the end of the year.
I hope that someone answer me soon because not even my accountant is so knowledgeable about this type of market and I can't wait to get started.
Thanks a lot!
Rino
Mar 27, 2023 07:33:14 AM Edited Mar 27, 2023 09:20:05 AM by Nikola S
Hi,
anyone knows how do I address an Italian digital invoice to a client that doesn't have his complete data upon the invoice provided by Upwork?
-----------
**Edited for Community Guidelines**