Hello , i just recived a notification from paypal about
EU regulations require that we collect additional account information , after i have recived more than $1800
to resolve the issue i have 3 options to choose from
i would like to know what should i do since im only a freelancer and not a business
Thanks in advamce
I don't know what you are considered under EU for tax purposes, but in the US you are a business, sole proprietor. So you would still choose one that had to do with a business.
I suppose it is going to depend on your tax laws and requirements in your country, but in the US if you make over $600 in a given year you must file and you are considered a business.
I assume they are wanting you to choose a Sole Proprietor on the choices there. They are a bit hard to read without zooming them.
That is exactly my problem with PayPal.
If you say you have a business, although sole owner, they will aks for more documentation, that i, for example, cannot provide. If I chose private account, I have a limit of somewhere 2500 USD per YEAR that I can receive.
So, for me, PayPal is not usable. I am still searching for an alternative. LTF would be nice, but the algorithsm here do not take into account that I might have a suitable bank account in another country than the one I live in.
What do they ask for that you can't provide?
This is a very generalist statement, but beware about earning in other countries aside from where you have citizenship. If this applies to you and if you receive deposits into a foreign account, the tax gods may assume you are doing business in a foreign country. The problem with that is you may get taxed twice and if you aren;t prepared for that scenario it can be a hell of a problem when it comes time to pay up. You may also run into legal issues with your visa type etc...
Not all countries have this issue, but some do and it's definately worth checking out.
Disclaimer: I'm NOT an accountant. I have however lived and worked abroad several times.
The easiest way go about it is to register a business with a land based address in your home country. Virtual offices work great for this, as often a PO box isn't enough.
If you do that, Paypal should not be an issue for most people. Again... blanket statement and does not apply to all situations. Always a good idea to consult with an accountant.
Tony, thank you for the good advice, but fortunately the tax problems do not apply to my situation, only PayPal does not understand this - among other problems.
I would be fine if Upworks would not charge $30 for one payment on my bank account - as it is I have to find another mode of payment or search for another Freelancing-site after Elance closes. THERE I get my money once a month without charge - at least until now.
Although why the original poster, who lives in Egypt, cares about complying with European regulations is a mystery to me. As somebody who lives in the U.S., I certainly don't care what European regulations require of workers.