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VAT charge

Community Leader
Teri S Member Since: Oct 17, 2011
11 of 26

@Nichola L wrote:

Teri I may not charge/pay VAT, but I am taxed over 23% on everything I earn which has to be paid every three months. So adding that extra 2% on the service charge actually does count. Autoentrepreneurs in France only pay further tax if their gross earnings exceed a quite high ceiling.

 

Autoentrepreneurs do not benefit from business expenses.


Okay, I didn't know, that. Then I have to say that autoentreprenurs seem to me to be getting the worst end of the deal in all areas. Unless the benefits are really high, I woud definitely be looking at a different format for my business. Even hobby enterprises in Sweden are allowed to deduct expenses related to the hobby. Not being able to deduct expenses would probably be a deal-breaker for me. You have my sympathies.

Community Guru
Petra R Member Since: Aug 3, 2011
12 of 26

But Nichola, you DO pay VAT for goods and services you purchase every day!

 

Every time you buy something you pay VAT. (unless it is something that's VAT exempt)

 

You are buying something from Upwork which is clearly not an autoentrepreneur, so you are paying VAT on what you are buying.

 

 

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

I know. I never said that I did not pay VAT on goods. I do not always pay VAT on services as I have already explained. I am merely pointing out that the playing field on Upwork is no longer level.

Community Guru
Petra R Member Since: Aug 3, 2011
14 of 26

@Nichola L wrote:

I am merely pointing out that the playing field on Upwork is no longer level.


 Is it TRULY going to make a significant difference? 2% (give or take) ? Seriously?

 

I'm looking at the bright side: The money I lose from this is more than made up by the exchange rate. Think how many more Euro we are getting for our Dollars at the moment, compared to a year ago?

 

Yet how many European freelancers have lowered their rates accordingly? I know I sure as hell have not.

 

2 years ago the Dollar was worth € 0.73 - today it's € 0.94 (mid market rate, obviously the retail rate is a little lower)

 

 

Moderator
Valeria K Moderator Member Since: Mar 6, 2014
15 of 26

Hi Ailsa,

 

In addition to what Teri has already explained, you can refer to Garnors original post on this thread for more information.

~ Valeria
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Ace Contributor
Ailsa C Member Since: Jul 26, 2015
16 of 26

Thank you, Valeria - but this is all completely irrelevant, as has been much of the discussion above.

 

Upwork apparently believes that freelancers in the UK (I am speaking only for the UK) are VAT registered and have a VAT number. This is entirely erroneous.

 

I am a freelancer, not a business. If I were a registered business, I would no doubt be registered for VAT, although since my work is largely educational and educational written material is VAT-exempt, any such business would not necessarily be VAT-registered.

But I am not a registered business, am not VAT registered, do not pay VAT and do not pass it on to my clients.  

 

Yet Upwork repeatedly asks me for my VAT number. It would seem this is simply too difficult for them (which is certainly the impression I am getting) and that they no longer understand what 'freelancer' actually means.

Moderator
Valeria K Moderator Member Since: Mar 6, 2014
17 of 26

Hi Ailsa,

 

Upwork doesn’t require you to have a VAT number. But we will charge VAT on the services to freelancers and agencies within the EU unless they provide a valid VAT number.

 

Please, see more information in this help article.

~ Valeria
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Ace Contributor
Ailsa C Member Since: Jul 26, 2015
18 of 26

OK Valeria,

I have to admit that I have been in the wrong here - and the help article does explain it very clearly - So, my apologies.

But it's a pity that I keep being asked for my non-existent VAT number and that Upwork can't accept that I am not, and cannot be, VAT registered - rubs salt in this particular irritation.

Ailsa (the name is Ailsa, not Alisa - but you're not alone).

Moderator
Valeria K Moderator Member Since: Mar 6, 2014
19 of 26

I am sorry about misspelling your name, Ailsa. I corrected it in my post.

~ Valeria
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Ace Contributor
Ailsa C Member Since: Jul 26, 2015
20 of 26

Has to be said that for beautiful manners you win hands down!!

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