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maruscadesign
Member

How to pay taxes in Romania through a SRL

Hello Romanian Freelancers, 

 

I have a question without a clear answer anywhere.

I have opened an SRL in Romania this year. I just start to work on UpWork and I want my incomes to be through my SRL.

Do you know how is the best way to do this?

 

Thank you in advance,

Gabriel

17 REPLIES 17
versailles
Member

You may want to check with an accountant for the details, but basically if you're the only member of the SRL (LLC) it should be straightforward.

 

You have to report all your earnings on Upwork as the Company's earnings. There could be an issue with invoices since Upwork doesn't send you any copy of the invoices they send to your clients on your behalf. But again, your accountant is the right person to consult with.

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"Where darkness shines like dazzling light"   —William Ashbless

Thank you, Rene!

I will talk to my accountant for the details. 

 

Hi Rene, 

 

Can I send an Invoice to UpWork for the payment I receive? That's what my accountant told me. 

If yes, How and what that Invoice should include? All the jobs I have done in that month for example? Or something else? Do I need to change the name of my account to the Company name? I'm the only member (Administrator) of the Company.

My company is an SRL(LLC) wich doesn't pay VAT in my country. How this influence the Invoice?

It's all so unclear for me. 

 

Thank you in advance,

Gabriel Marusca

This is a solution I was thinking about as a solution for EU contractors actually. Since Upwork is an intermediary, why not billing Upwork. You don't actually need to send the invoice to Upwork, but you can edit one for your accounting.

 

Concerning the VAT exemption, there it doesn't influence your invoice. You just don't add VAT. You may need to reference the tax code section which exempts you from VAT on the invoice however.

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"Where darkness shines like dazzling light"   —William Ashbless

Just wanted to say thanks! This thread is super helpful for me as well!

synergy22
Member

Hi, Gabriel

 

I operate the same way as you do, except that my company is platitor de TVA.

you will need to register in the ROI registry, if you have not done that so far.

 

also, the bank account registered as payment method with upwork needs to be your SRL's bank account. 

I retrieve my earnings from upwork to that bank account. the money send by upwork will hit your company's account in 5-7 days. they send USD, but you cash in EUROs. so you lose a bit because of the conversion rate.

 

if you want me to, I could refere you to my accountant. she services other freelancers, as well.

Lavinia

Hi Lavinia,

 

Could you please share with us who appears as the 'PAYER' on the payments you receive from Upwork ? Is it an entity from within or ouside the EU ? ( if the money comes from ouside the EU, it's not necessary anymore to register in the ROI, I believe )

 

One more thing: is it mandatory to have the USD converted to EUR ? Isn't it possible to open an account in USD and not have the conversion made ?

 

Thanks!

Hi Lavinia,

 

Thank you for your answer and insights. In the mean time I find a solution for this. As Andrei ask, do you "send" invoices to UpWork or directly to clients? If you send to clients, how do you convince them to give you their details? For the time being, I invoice UpWork as a US company. But I pay the VAT for the commissions and so. 

If I will be interested in the future into a collaboration with your accountant, I will let you know. 

 

Thank you,

Gabriel

Hi Gabriel!

Could you share with us the solution you found? I  have the same issue! I want to start to work on upwork, but I don't know what is the best way to do it! Do you invoice Upwork or the client?  I have heard that in the meantime, upwork has changed its billing mode, writes the name of the freelancer, but you pay money to upwork(in case you want to hire a freelancer).  In case you want to work on upwork, the invoice contains client name? 

 Thank you!

p_robi86
Member

Hi Everyone,

 

I want to start a company (a PFA) and report my earning to local tax authorities.

 

Some of you mentioned that a freelancer should invoice the client and some of you said that we should invoice Upwork directly.

 

Based on what contract do you write your invoices? As far as I understand each invoioce needs to be backed up by a contract in Romania.

 

If you invoice the client, do you make a contract and have the client sign it? If yes could anyone share how this contract looks like?

 

If you invoice Upwork directly, based on what contract?

 

Thanks!

Hello,

 

how did you solve this?

I am looking into the same issue right now.

 

Thank you!

Peter, really curious if you ever found an answer to your message.

 

I'm having difficulty with this as well and then some:

 

My main struggle to understand so far is the below:

- I signed up on upwork and started work in Nov 2018.

- I was not registered anywhere (not as PFA nor SRL).

- Therefore I did not dare take out any money since I started - was afraid someone might notice money comes in my persnal back account and would ask where the taxes were paid.

- Now I'm in the process of opening up a SRL (the RO equivalent to LLC)

- On my upwork account I can see the invoices from me to the client but they are dated from before the SRL (LLC) was setup.

 

Does anyone know a way of being able to put this money on the company bank account so I can pay taxes on it and use the money?

It would be a shame to loose it all for not being able to take it out since it's dated before the start date of the company.

 

My accountant said I should issue an invoice to Upwork (which to me does not sound correct since the invoice upwork prepares in my name has my name and my client's name) or client (seems more legit) -- but do you actually have to send this invoice? .. or just create it for the total sum I have on upwork so far and file that invoice?

 

Does anyone actually check what I invoice vs what my client pays (they are in the US).

 

Hope someone can shed some light, since these type of online work and invoicing is not something our RO accountants are very familar with as far as I can see.

 

Thanks in advance,
Iris

Normally you should have declared that money already and paid taxes on it for year 2018. The taxes would have been higher without a SRL, but the funds in your Upwork account are still yours like in a normal bank account.

What you can do now is issue a new invoice to Upwork for the entire amount (like your accountant advised), or issue a new set of invoices to your US customers(this is more complicated as you would need to take the commisions into account, etc).

It would have been more difficult if you had clients from within EU.

That's really helpful Andrei and makes sense.

 

I guess the invoice I would issue for upwork doesnt need to be sent to upwork.. just to have it issued and registered in my "contabilitate". To me this would make sense because the upwork created in my name by them on the portal and the one I create for my accountant would have the same sum.

 

Does that sound correct to you?

 

Thanks so much for the super fast reply 🙂

UW may not care about the invoice (they make it clear in the TOS they are not your client) but you should still send it. The amount on the invoice should be what you received after the commission was paid. Example: client pays $100, UW sends them an invoice for $100; you get $80, UW gets $20. You issue an invoice for $80, not for $100. 

That's what I was going to do. However, it's required to include Upwork VAT number in inovices. Do you know where I can get it?

You can find it on the invoices issued to you for commission.

 

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