I don't pay VAT taxes

[223a86da]

Hi. I'm a Dutch freelancer. My annual income less than €20000. So, I do not pay VAT taxes and my invoices have not to have a string with VAT. How will UpWork do this?

[martina_plaschka]

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Natalia B wrote:

Hi. I'm a Dutch freelancer. My annual income less than €20000. So, I do not pay VAT taxes and my invoices have not to have a string with VAT. How will UpWork do this?

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What you mean is that you don't have a VAT number? In that case, reverse charge will not apply to you and you will have to pay VAT on the upwork fee and the purchase of connects.

[223a86da]

I have a VAT number. But I am exempt from tax because my income is small.

[feed_my_eyes]

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Natalia B wrote:

I have a VAT number. But I am exempt from tax because my income is small.

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As far as I'm aware, if you've registered for a VAT number, that means you have to charge VAT to your clients. If you don't have a VAT number, that means you need to pay VAT on your purchases (i.e. Upwork service charges and connects). You can't have it both ways.

[223a86da]

I've registered in The Netherland.

https://meijburg.com/news/new-vat-small-businesses-scheme-january-1-2020

[feed_my_eyes]

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Natalia B wrote:

I've registered in The Netherland.

https://meijburg.com/news/new-vat-small-businesses-scheme-january-1-2020

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Okay, but why would you register if your income is below the threshold? That means that you need to charge VAT to your clients; your government will expect you to fill out VAT forms and remit the taxes to them. 

[223a86da]

I registered because I need to pay Income tax.

[feed_my_eyes]

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Natalia B wrote:

I registered because I need to pay Income tax.

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Income tax isn't the same thing as VAT. 

[martina_plaschka]

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Natalia B wrote:

I have a VAT number. But I am exempt from tax because my income is small.

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Then use it so that you will not have to pay VAT on fees. 

[223a86da]

Do you mean I need to remove VAT number from my account?

[feed_my_eyes]

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Natalia B wrote:

Do you mean I need to remove VAT number from my account?

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I'm not Dutch so I can't give you definitive advice, but in my country, you can't just ignore the VAT once you've registered; UK freelancers are charged a penalty just for failing to submit the forms in a timely manner. You should contact someone at your taxation office to sort this out (also find out how to do your bookkeeping properly and keep accurate records - that's part of running your own business).