Is there a VAT fee on Bonus given from a client? Does an expense reimbursement exist from a client?

[e01d0437]

Hello there!

Is there a VAT fee on a Bonus given from a client?

Is there such thing as an expense reimbursement from a given client? And is this reimbursement subject to a service fee? Is there a VAT fee on this?

Thanks for letting me know.

[martina_plaschka]

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Oriane P wrote:

Hello there!

Is there a VAT fee on a Bonus given from a client?

Is there such thing as an expense reimbursement from a given client? And is this reimbursement subject to a service fee? Is there a VAT fee on this?

Thanks for letting me know.

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If you pay VAT on any upwork fee, you will pay on the upwork fee for a bonus too. 

Upwork doesn't have an expense management system where cost would be reimbursed without a fee for a good reason: it would be abused. 

The best way to handle expenses is have the client pay them directly to the provider of the service. 

[e01d0437]

What about "expense" reimbursement given from the client?

[petra_r]

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Oriane P wrote:

What about "expense" reimbursement given from the client?

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As Martina explained, "expense reimbursements", too, are subject to the Upwork fee and VAT where applicable.

**ALL** payments through Upwork are.

[e01d0437]

Do both the client AND the freelancer pay these fees? Or is it just the
client?

[petra_r]

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Oriane P wrote:
Do both the client AND the freelancer pay these fees? Or is it just the
client?

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The fee is taken out of the money paid by the client. If appropriate in your country, VAT is also paid on the Upwork fee (only). So if you have a $100 contract, Upwork takes $20 out of that, leaving you with $80. If you are in a country with 20% VAT, there would be a further $4 deducted.

Clients pay a separate payment processing fee.