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Upwork has no shame

alupu
Active Member
Andrei L Member Since: May 6, 2015
1 of 69

Hello

 

I just received a message from Upwork that, starting with November 30th, Upwork is introducing VAT charges for Upwork service fees, memberships and additional Connects.

I am an avid shopper on american websites and , for years now, not one has charged VAT on my orders.

I want to inform Upwork that , according to european level legislation, extra-european online orders for products and services under the value of EURO 50 are FREE OF VAT

So if I get a fixed price assignment of $100 , the upwork fee is 11.11 , so it is under EURO 50, and, consequentely, FREE OF VAT

mrdanielprice
Community Guru
Daniel P Member Since: Aug 15, 2014
2 of 69

I've read the email, too.

 

I'm a bit confused as to what this means for Upwork's 10% fee.

 

Have they been charging us VAT before this? We're charged 20% tax here in the UK, though it's always inclusive, unlike the US, which puts tax as separate from the buying price. So, basically, to us, things just cost what they cost; VAT never comes into it, really. Does this mean that 10% fee will go up by %20?

 

I'm interested in hearing what others have to say on this topic in general and how it may or may not have an impact on their earnings.

battershall-ramo
Community Guru
Ramon B Member Since: Jan 11, 2015
3 of 69

They wouldn't pay taxes on our tea, so why should we capitulate to this?  History will prove us right Cat Mad

 

 

 

vicnaum
Active Member
Victor N Member Since: Mar 29, 2010
4 of 69

Same confusion here.

 

Firstly, oDesk moves the 10% charges from clients to freelancers, and we eat that.

Then, it starts charging us VAT for these charges. Unbelievable, really.

 

Now here in Poland it already gets up to 13.6%.

 

I believe the next step will be to charge EU clients VAT (23% here) from our price, so we'll have to make clients pay more, or lower our prices.

 

Everyone in the food-chain wants his piece.

Feeling a little "bitcoinish".

colettelewis
Community Guru
Nichola L Member Since: Mar 13, 2015
5 of 69

Check out the official announcement. The VAT they are charging is on their own 10% service charge. But this still won't work. I do not pay VAT in France as I am an autoentrepreneur. Upwork seems to think that the European Union has a blanket policy - hollow laugh.

 

jmeyn
Community Guru
Joachim M Member Since: Mar 23, 2015
6 of 69

@Nichola L wrote:

Check out the official announcement. The VAT they are charging is on their own 10% service charge. But this still won't work. I do not pay VAT in France as I am an autoentrepreneur. Upwork seems to think that the European Union has a blanket policy - hollow laugh.

 


Sorry Nichola, you do pay VAT. You are merely exempted from charging VAT. With this exemption you then can't deduct the VAT you pay. 

suzedablooze
Ace Contributor
Susan M Member Since: Feb 9, 2015
7 of 69

Yes it sounds like if you're in the EU you now pay more in terms of services fees. For example, I am British so I pay 20% on top of the 10% fee, aka I now pay a 12% charge out of my earnings here. (this is as well as my income tax on earnings).

 

I think this is the case - I'm no expert.

 

Of course if I was registered for VAT I would be able to claim this back, but as a small business, it's a big thing to take on doing VAT returns every 3 months.

 

It's getting to the point where using a platform like this for freelance work is just not worth it.

kochubei_valeria
Community Manager
Valeria K Community Manager Member Since: Mar 6, 2014
8 of 69

Hi Andrei and others,

 

Nichola is correct. Upwork will add your country-specific VAT to our service fee, purchases of services, memberships and connects and remit this tax to your tax authorities on your behalf.

 

Please, see this thread for more details and answers.

~ Valeria
Upwork
anna_wwa
Active Member
Anna J Member Since: Jun 22, 2015
9 of 69

Hello Valeria,

 

Me and other freelancers from Poland would like to know in what form you will provide our countries with the VAT statement. 

 

Will you be sending our data like i.e. VAT number and invoices?

 

In Poland it would be potential problem, because of burocracy of tax offices. 

If you would send the statements with freelancers data and/or invoices, they will surely have to visit Tax Offices to clarify this. And this cause costs - many of them will have to travel through the half of the country.

 

Please clarify which data you will be transfering.

sonya3
Ace Contributor
Angela P Member Since: May 4, 2013
10 of 69

We have the same problem in Romania, our bureaucracy is the worst. To get this number it will take from 30 to 90 days if they don't make any mistakes Smiley Sad and they usually do ... 
Also we have a 24% but it varies depending on the service provided and on the amount earned, it can be anywhere from 5% to 24% and it will change with the start of the new fiscal year ... so how will UpWork calculate it?

 

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