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Upwork has no shame

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

@Valeria K wrote:

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, from the questions and worries I understand that most people (even in Europe) have no idea how the VAT system works.

 

To all:

 

 The VAT you pay to Upwork on their invoices to you can be deducted from the VAT you charge to your clients. Hence this are no additional costs, with one exception. The exception being that you are VAT exempted as a small business (in Germany if you have less than Euro 17,500 annual turnover you can apply for it). As you then don't charge VAT you can't deduct anything but you still obliged to pay VAT. IMHO it doesn't make sense to apply for VAT exemption.

 

You may also want to follow the thread "Name on received invoice" in the client forum.

bmada17
Active Member
Madalina Ivona B Member Since: Jan 6, 2016
22 of 69

Hello Valeria,

Can you please tell me, how should I proceed if I`m a non VAT paying person in Romania? Here we are paying VAT after we earn an ammount of 10000Euros, and Inever had such an ammount from upwork in my life. What can I do and where should I send papers from my firm to demonstrate this, and not being charged with VAT?

Thank you!

 

vladag
Community Manager
Vladimir G Community Manager Member Since: Oct 31, 2014
23 of 69

Hi Madalina,

 

The VAT charged by Upwork is only for the VAT on the service fees that Upwork charges you for using Upwork's services.  Upwork does not charge and does not take responsibility for VAT that may or may not be due on charges by you as a Freelancer to your client.

 

The only way for us to confirm whether someone is a taxable person for VAT purposes is for us to collect a valid VAT number in the prescribed EU format from that person.

 

You can see the original post here which links to our help article and FAQ thread if you have further questions.

Untitled
arhsasa
Active Member
Sasa J Member Since: Jun 22, 2015
24 of 69
 

Valeria please, can you add Slovenia to the question time, too.


Nichola you are totally right and I agree with you. This charge should be global otherwise the bidding system will become even more unbalanced and not fair.
Slovenia is a small country and persons like me are not usually registered for VAT. 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 month. 
 
And it is really getting to the point where using a platform like this for freelance work is just not worth it, like Susan said before. 

prestonhunter
Community Guru
Preston H Member Since: Nov 24, 2014
25 of 69

re: "This charge should be global otherwise the bidding system will become even more unbalanced and not fair."

 

Don't drag me into this.

 

I don't know exactly what is happening... it sounds as though some things need to be confirmed.

 

But if Europe's laws force Upwork to collect VAT for Europeans, why should that have anything to do with me... an American contractor working for clients in Australia, the Philippines, and the United States?

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

Preston, with respect you know nothing whatsoever about European law.

 

Europe cannot 'force' Upwork to  exact VAT when every country within the European Union has its own taxation and VAT system. 

 

And I am not "dragging "you into anything.

 

 

 

 

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

@Nichola L wrote:

Preston, with respect you know nothing whatsoever about European law.

 

Europe cannot 'force' Upwork to  exact VAT when every country within the European Union has its own taxation and VAT system. 

 

And I am not "dragging "you into anything.

 

 

 

 


 Nichola, that is exactly what Europe is doing. It should affect only sales to private individuals as businesses would have to pay importation VAT anyway. Freelancers, regardless of the size, are viewed as businesses and have to pay VAT. If they are VAT exempted they just can't claim the VAT they paid back as they don't charge VAT. They nevertheless have to pay VAT, even importation VAT.

clau1986
Active Member
claudia n Member Since: Jun 22, 2015
28 of 69

Hello.

I did talk with one of your collegues ( Lee) through chat and he explained how this whole thing is supposed to go . 

For example for me (Romania) where the normal tax is 24% they will add 24% of 10% (service fee) on top of the actual service fee . 

However , I want to know where this data goes and what it will include in the tax form you send to the Government . 

Also , the number you want us to include in the tax form will take WAY longer to get then 1 month that you set .

How the information regarding VAT I/We paid will be disclosed with our countries' tax offices? I don't recall adding any tax identification numbers to the site, even address wasn't verified in any way. Is it going to be bulked up e.g. monthyl transfer between UpWork and Spain/Germany/Poland, or individually for every single freelancer? 

Thank you and please let me know , 

Claudia N

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

Hi Claudia,

 

We are currently clarifying information to provide the most detailed answers to many questions we have been hearing in the Community including yours. A new thread with answers and more information will be posted in the Announcements section tomorrow.

~ Valeria
Upwork
boshoffirene
Community Guru
Irene B Member Since: Feb 17, 2015
30 of 69

Not being funny....but Upwork DOES realise the EU is NOT one country with standard laws regarding taxation, etc. right? That they might have one currency for the most part but that each state is autonomous? 

 

Not wanting to be a party pooper...but you would need quite a number of professionals who are all savvy with international tax laws for EACH of those countries...would you not? And...as is the case where I live as well...not all kinds of services are vat compliant, freelancing being one of them...and you also are only eligible to ask for VAT returns in many cases (for businesses which make use of VAT) if you earn a certain yearly income... Now as I am not selling any tangible goods, for instance, I would not be charging any VAT....so....etc.....see what I mean?

 

Tut tut tut....Upwork...methinks you have just opened a new can of beans here...and got hold of a new switch which can be used to beat you with...

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