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VAT Numbers in UpWork - I want to register as LTD in my country

Active Member
Stoyan T Member Since: Oct 13, 2017
1 of 5

Hey UpWork, 

I can really use your help on an issue. I have registered my VAT number as a physical person in Bulgaria. 

However, I am ABOUT to cross a certain income threshold ($6,000 left) whereby the country wants me to switch to a small Ltd. company where I am the sole employ/owner. It's not that I am FORCED to, but it's the cheapest way for me, i.e. to switch to a single-person company.


With this in mind, I want to know if I can add my "company" VAT on UpWork and if this would conflict with any policies at UpWork? I.e. I am registered as an individual, but my VAT will be a "company's" one. 

CONVERSELY, I can still keep earning money as a physical person from UpWork if I choose to, as I am $6,000 from the threshold. 

Just want to make sure that my finances are tight. : )

 

UPDATED: I just realized that if I want to change my bank account, I will need to enter the Ltd.'s name, which would be a mismatch with my account name! 

Does this mean that I can only continue to earn money as a physical person from UpWork?

UPDATE 2: I hope this helps: As per Bulgarian tax law, I can be the owner of a company and still receive money as an physical person.

I.e. I can sign contracts from the name of the company, but also work as a freelancer. Basically, I have a VAT number for myself and one for the company right now.

Moderator
Goran V Moderator Member Since: Mar 24, 2017
2 of 5

Hi Stoyan,

 

You won't have any problems with adding a VAT number from your company, you may only be asked to provide additional documents to verify the VAT number of your company. Thank you.


Untitled
Active Member
Stoyan T Member Since: Oct 13, 2017
3 of 5

Hey Goran V, 

That's brilliant!

Just a quick question.

If I want to deposit money directly into my company's account wouldn't UpWork hold this as an offense? 

My company's name is XXXXXY, but my account name on UpWork is YYYYYYX.

I see two possible and legal scenarios:

1) I can continue earning as a physical person until I reach the $6,000 threshold.
2) I can send to PayPal and then deposit into my company account and pay taxes on this money as earnings for the company. They will be such since I will have the VAT entered here. 

Is Scenario 2 acceptable and in line with UpWork policies?

Moderator
Goran V Moderator Member Since: Mar 24, 2017
4 of 5

Hi Stoyan,

 

Just to confirm that you can also add a payment method issued on your company, our team will need just a confirmation so that we can verify it. 

2. I would suggest to consult with a local specialist on how to report your earnings or even withdraw them (check the option that best fits your needs). 
Upwork won't charge VAT to anyone who has provided a validated VAT number. To learn more about VAT check out our guide Here, thank you.


Untitled
Active Member
Stoyan T Member Since: Oct 13, 2017
5 of 5

I see, in this case, 

I will take the following to be true:

I can continue operating under "Stoyan **Edited for Community Guidelines**"  on UpWork. I can operate as a Stoyan **Edited for Community Guidelines**and still add the VAT of my company ( I am using my physical one)

I've checked with an accountant who told me that I can send the proceedings to PayPal and then to my company's bank account - as long as the client has a valid VAT and they submit that VAT to the respective tax office in their country, everything will be clear at the tax office.

HOWEVER, would UpWork allow me to use a VAT registered in a single-person company registered in my name while transfering money to my physical PayPal, and only then transferring to the company? 

Sorry to be so much trouble, Goran, just want to make sure I am not doing anything against TOC.

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