I tried to find information about my question, but it seems, noone discussed it yet.
I live and have VAT number in Italy.
The thing is: italian government issued a new law (starting from Jan 1st 2019) about mandatory issuing electronic invoices in the new online system and other types of invoices will not be accepted. Since most of my income comes from clients on Upwork, it may be a problem for me.
I'm not sure if I can send any other invoice to my clients besides those they already receive through Upwork.
Do Upwork people know about this update? How would you recommend me to act?
Thanks in advance,
If you go to your My Contracts or All Jobs tab, then click on the job,on the earnings page it displays invoices for every payment you've received from a client. I'm not familiar with the new law, but I believe this should be enough.
I have a partita iva in italy, and was wondering how to do a dichiarazione dei redditi correctly,
I thinkt we have to do a final (meaning at the end of the tax year) invoice to Upwork with all the money we earned that year, since it's upwork paying us and not the client. What do you think?
thank you for your comment. I will try to answer what I know:
1. I don't do decchiarazioni dei redditi by muself, I pay my commercialista, who is doing that for me and frankly it's already complicated for me even with his help.
2. I don't think Upwork is officially considered to be paying us. Our clients pay us.
3. And at this point all we (Upwork freelancers in Italy) can do is download invoices generated by Upwork and then create another version of them, which correspond to the Italian laws.
2. It was discussed somewhere on the forum previouslym but I'm pertty sure Upwork is not our empoyer.
3. If you go to "Transaction History" (in the Menu "Reports"), it shows you all the payments you had so far for a certain period ("Statement Period"). Even if you didn't finish any contract yet, but already had some payments, those payments should be there. If you click the green button "Download invoices", you'll download PDF files with all your payments. Those are the invoices that are supposed to be our "fatture", but since they don't correspond to the italian rules, my commercialista adviced me to add missing information to them, otherwise Agenzia delle entrate won't even consider them.
By missing information I mean:
1) It has to have a number, that you assign to it every year, but it already has the number which Upwork assigned to it, so what I do is add my number to the Upwork number. With a slash or "-"
2) If I remember right, it doesn't allow you to add codice fiscale AND partita IVA, so I just manually add it.
Of course technically it's wrong, and your clients will get only the copy of Upwork's invoices, but for now it seems to be the only way to declare your Upwork income in Italy.
I'm describing the way we decided to go with my commercialista, but please talk to your commercialista and see what he says. If you have anything new, I'd be happy to know that.
Have a good weekend,
Thank you so much for your super detailed reply.
it seems all clear, but I do have one more question, I see in my invoices, downloaded from Upwork, the payments made from a certain client, and that seems fine.
although i also see payments I made for service fees, do you make invoices for those too? Sorry it might be a stupid question...
Also, it seems to me that it makes more sense to be paid fewer times rather than everytime we have money on our account, so that we have to make less fatture?
Regarding the fee invoices (do you mean the fees you pay to Upwork, right?) no, we don't incude those and the taxes we are paying are for the full anount, paid to us by client. For example, if you had a payment from your client for $100, you paid $20 fee to Upwork and there are $80 left for you. You still pay taxes from $100, unfortunately.
I'm not sure what you mean by getting paid fewer times. You can decide when to withdraw your funds from your Upwork account to your bank account, but I don't think it influences anything taxes-wise. The only thing I can think of is that you pay a little withdrawal fee (I think $0.99 for the direct transfer to your bank account) every time you withdraw your funds.
I live in Argentina and that is the system we have had for a long time. We have to invoice through the government software.
You can invoice each client on the Italian system independently of the invoice Upwork generates. The type of invoice is not relevant at an international level, meaning the invoice Upwork generates doesn´t get registered under your local system, only the ones you generate. So you can invoice the clients and just don´t send them the invoice since they don´t need it. Or you can send it to them, it won´t make a difference to them, it might be the case that you might need to ask for their invoicing information, you just let them know why.
If by any chance, the system is like in Argentina in which each transference you receive needs to match 1 invoice (ridiculous, I know, but this is how it works here) then let me know since you might need to tweak the process.