@Steven P wrote:
My company is not VAT registered and so I don't have a VAT registration number.
I would also point out that if a company is not VAT registered, then it is ILLEGAL to charge VAT.
nobody is asking you to CHARGE VAT.
You are being asked to PAY VAT on the service fee, like you pay VAT every time you go into a shop and buy things (provided those things are not VAT 0rated)
Regarding this from Upwork ..
No, Upwork won't charge VAT to anyone who has provided a validated VAT number. When Upwork is audited by your government, we are required to substantiate that we have charged VAT to all VAT non-taxable persons, and that we have reverse-charged VAT to all taxable persons. The only way we can confirm and prove to your government that you are a taxable person is by collecting and validating your VAT number. Otherwise, your government will assume that Upwork is providing services to a non-taxable person and will require us to assess VAT, regardless of your personal status as an autoentrepreneur.
That is available for France and not for UK !
In UK we can not have a VAT number as we are exempt.
So we can not provide a VAT number to Upwork, so we have to be charge.
It has no sense and not legal .
Otherwise, your government will assume that Upwork is providing services to a non-taxable person and will require us to assess VAT : Not true in UK !
So Upwork is not legal from our country ??
Based on Articles 58 and 357 and onward of EU Directive 2006/112/EC (“EU VAT Directive”) the services rendered by Upwork qualify as electronically supplied services. For these Upwork must charge EU VAT unless the Freelancer is held to self-assess VAT itself.
If you can provide a VAT number in the EU format listed here, Upwork will not charge VAT. In all other cases, VAT will be charged. Upwork is responsible for charging, collecting and remitting VAT when providing electronically supplied services for our EU customers.
@Ian B wrote:
Would be great to know if found any information.
I don't blame Upwork but it does seem wrong that the UK cannot provide a VAT number for those who are not liable for VAT.
Huh? You are mixing up two things:
1) Being VAT registered means you get to charge VAT on your services.
2) Having to pay VAT on goods and services as you do every time you meander down the High Street and buy something. Paying VAT on the service fee is no different to paying VAT on the batteries you buy in the newsagents.
You don't need a VAT number to work on Upwork any more than you need a VAT number to buy something at Argos.
@Gary M wrote:
Has anybody (icluding the OP) from UK managed to get their payments from UpWork without supplying a VAT number?
Yes of course UK freelancers on Upwork get paid! You could try reading the rest of this thread, and then go to the help pages tap in VAT press enter and you will find out more about how Upwork applies VAT.
I personally think it is quiet simple:
You agreed to pay Upwork 20% fee for their services (finding you customers)
They have to charge you Value Added Tax for this service as most companies normally do in Business.
E.G: You go to the shop and buy a camera - You are a consumer You have to pay Gross Price (Net+VAT)
Upwork operates same way: You buy a service, you pay VAT for the service.
If you are a VAT registered company/entrepreneuer - IMHO you should pay VAT anyway here,
but you will have an option to get a refund on this VAT from your local IRS.
Hope it helps
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