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French auto-entrepreneur accounting and Upwork invoices

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Active Member
Charlemagne S Member Since: Jul 21, 2016
1 of 5

Hi there!

I've a quick question related to accounting as french "auto-entrepreneur" and upwork invoices.

I'm not yet an auto-entrepreneur but I plan to incorporate as auto-entrepreneur before the end of the year.

 

The more I read threads, the more I get confused about how to report our earning! This is what I've read:

 

  1. Ask the client to send you the invoice issued by UW in your name (but it may no be compliant with french legislation)
  2. Send your own invoice to the client.(but two invoices are issued for same job, upwork's one and yours...)
  3. Just report your actual earning (i.e. what actually comes to your bank account).

How are you dealing with that?

 

  • If you use method #1 or #2, can you please explain how you deal with the difference between invoice (total amount billed to client, including UW fees) and actual income in you bank account?
  • If you're using method #3, can please let me know what evidences you provide for the income line in the accounting record, since we have no invoice issued with this amount?

Please note my question is only on the accounting matter. VAT, intra-community vat and the special case of the french AE status questions are pretty clear for me.

 

Thanks for sharing your experience!
Regards,
Sébastien

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Community Leader
Teri S Member Since: Oct 17, 2011
2 of 5

I'm not in France, so I can't help you chose which of the three methods is best for your situation, but I do create my own invoices for my clients. I "get around" the difference between the amount the client is billed and the amount that is transferred to my local bank account by issuing my invoices for the amount the client is billed. I then register the service fee as a business expense. Upwork issues adequate invoices to freelancers for the service fee that we pay.

 

If it helps, I consider Upwork's payment system to be a US dollar "bank" account in my name. The total amount the client pays is registered as earnings into my "foriegn currency account" and the service fee is registered as a payment from that account. When I withdraw money from Upwork I register it as a transfer between two bank accounts.

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Community Guru
Rene K Member Since: Jul 10, 2014
3 of 5

It's #3. And as for accounting paperwork, I just keep track of Upwork's payments.

 

Anyways, under this status you're not subject to the same accounting rules as other business, you are only required to keep a record of your earnings.

 

You are, however, supposed to issue a bill to your clients, but since on Upwork you know nuts about them, you are technically unable to do this.

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"Where darkness shines like dazzling light"   —William Ashbless
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Active Member
Charlemagne S Member Since: Jul 21, 2016
4 of 5

Thanks Terry and Rene for your answers!

 

Rene, I understand that UpWork does not provide sufficient information to invoice the client. But, please, how tax service reacts if you record an income without invoice just arguing that "you are technically unable to do it"?

Won't you be in trouble here?

 

 

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Community Guru
Daniel P Member Since: Aug 15, 2014
5 of 5

I don't live in France, but if I were making any money from Upwork, I'd actually put Upwork down as the client because, really, it's Upwork who the clients are paying and then a percentage of that is being paid to you by Upwork, not the client.

 

That's, personally, how I see it from a technical standpoint.

 

If Upwork don't provide incoices when you're paid by a client (I wouldn't know, as I've not got any work on here yet), then I'd simply create an invoice and mark it as paid once your Upwork earnings land in your PayPal or bank account, or whatever other payment method you're using.

 

That's jsut my two cents, as the Americans say.

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