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No UK VAT number

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
11 of 28

@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)

axelleh
Active Member
Axelle H Member Since: May 4, 2017
12 of 28

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 ??

vladag
Community Manager
Vladimir G Community Manager Member Since: Oct 31, 2014
13 of 28

Hi Axelle,

 

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.

Untitled
axelleh
Active Member
Axelle H Member Since: May 4, 2017
14 of 28

thank you for your answer !

 

I will have a look .

ian_brown
Active Member
Ian B Member Since: May 27, 2017
15 of 28

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.

 

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
16 of 28

@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.

and

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.

ian_brown
Active Member
Ian B Member Since: May 27, 2017
17 of 28

AH, now that makes sense. 

Cheers , thanks for that.

gdmcsl
Active Member
Gary M Member Since: Apr 28, 2018
18 of 28

Has anybody (icluding the OP) from UK managed to get their payments from UpWork without supplying a VAT number?

colettelewis
Community Guru
Nichola L Member Since: Mar 13, 2015
19 of 28

@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. 

arekzagdan
Active Member
Arkady Z Member Since: Apr 28, 2018
20 of 28

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 helpsSmiley Happy
Regards
Arkady

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