So I have quite a complicated topic. I have a company in The Netherlands, so every 3 months I have to fill in and pay income taxes. It's all very easy when working with Dutch clients, but clients from outside of the EU or even overseas is another thing entirely.
Now I'd like to know what I need to do for this. I filled in my VAT number, but it keeps getting rejected even though I'm a 100% sure it's valid? Like, sorry Upwork I can't change my VAT? But then there's two things I need to know:
How much tax do I need to charge with customers without a company number?
How much tax do I need to charge with customers with a company number?
What can I do when Upwork keeps rejecting a valid VAT number, and how do I process Upwork income? Do I pay tax over this as well?
Thank you so much for helping!
Just to clarify, Upwork charges the country-specific Value Added Tax (VAT) to freelancers and agencies in the European Union (EU), unless you provide a valid VAT number. VAT will be assessed on services provided by us, not on services you provide your clients. To learn more about VAT check out this Help Article.
You can verify the validity of a VAT number by entering it in the VIES database. Let us know if it verifies in the database but not on Upwork. Thank you.
Tom - you can deduct the commissions charged by Upwork as a business expense or as "invoice received" on your quarterly tax declaration. That way they don´t factor into the amount on which you are taxed. This is how I do my taxes (on the advice of a tax advisor).
Thank you! Are you from the Netherlands? I would love to have a short call or chat with you to discuss this to make sure I'm doing things right if you'd be okay with that.