Hi Upwork community
I am a freelancer from Belgium and I inserted my VAT number in Upwork. So there was no VAT charged on my service fees.
Now after going over this with my accountant, I should actually pay VAT.
I am earning below a certain threshold, which in Belgium means I should pay VAT to Upwork and not to my government.
Is there any way to revert this and pay this VAT anyway, to Upwork?
Thanks in advance.
You have a very very confused accountant.
VAT is paid to the tax authority in your country, not to upwork. Since you have VAT number, you need to check if you can voluntarily opt out, not sure if that is even possible in your case.
If you don't have a VAT number and can't use reverse charge, you will pay VAT on your service fees, and upwork will withhold it. But they don't keep it, they pay it to the tax people.
I see no disadvantage in doing that at all. Unless you have clients in your own country, in which case you will have to charge them VAT on your invoices.
You can't reverse what already happened, it is only effective once you enter a VAT number or take out the VAT number.
Obviously, Upwork will not withhold it, but I do still pay it to Upwork right?
You are completely missing my point. Your second sentence would be true if I would earn more than the given limit (this is how it works in Belgium), but I don't. So instead of paying a percentage of my earnings (21%) to as VAT to my tax authority. I have to pay VAT on expenses.
That is how it works in Belgium, mind you.
So by entering my VAT number, I did not pay any VAT on my services fees. Which is something that I should have been doing.
So that's why my question is if it's still possible in any way to reverse this and pay the VAT for the services fees now. Something I'm legally required to do.