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600b15db
Community Member

official invoice 2019 after the Upwork changes

Upwork, before Odesk has changed their system many times.

 

I am losing track of their latest changes regarding invoices.

 

An official invoice in the EU needs to have the following details:

an official invoice in Europe this are the rules: https://ec.europa.eu/taxation_customs/business/vat/eu-vat-rules-topic/vat-invoicing-rules_en

What information must an invoice contain?

* Date of issue

* Unique sequential number identifying the invoice

* Customer’s VAT/TAX/TIN identification number (if the customer is liable for the tax on the transaction)

* Supplier’s full name & address

* Customer’s full name & address

* Description of quantity & type of goods supplied or type & extent of services rendered

* Date of transaction or payment (if different from invoice date)

* VAT/ TAX/TIN rate applied

* VAT/ TAX/TIN amount payable

* Breakdown of VAT amount payable by VAT rate or exemption

* Unit price of goods or services – exclusive of tax, discounts or rebates

______________________________________________________

In the past when Upwork was still called Odesk, all that information was written on it in the name of Odesk. And a client could just declare the Odesk invoice of amounts paid for a freelancers work done.

Then Odesk changed to Upwork and works as an escrow service, obviously for the accounting problems in many countries.

This was explained in the TOS as clause 6.7 "Formal Invoices and Taxes"

That the freelancer needed to provide these invoices to the client because Upwork was only an escrow service between both parties.

A logic change.

But now what Upwork 2019:

the clause 6.7 "Formal Invoices and Taxes" has been removed.

Many freelancers seem to think these days AGAIN that they get paid by upwork for their work. And it is Upwork that resells their work and bill the client under Upwork name. Same as Odesk did in the past.

Those freelancers think now that they do not have to issue an invoice to the client for the payment the client did to them via the Upwork escrow system.

Only if Upwork now again issues the invoices, then they need to complete the invoices with their legal required details under these rules: https://ec.europa.eu/taxation_customs/business/vat/eu-vat-rules-topic/vat-invoicing-rules_en

If it is still the freelancer obligation to provide the client an invoice, then where is that clause in the TOS 6.7 "Formal Invoices and Taxes" gone to?

As an official business, we need to get official invoices with all the details required by the EU law.

For that we ask the freelancers if they can provide those details before we start.

Now on the other side, freelancers are told they should not provide those details to their clients:

https://community.upwork.com/t5/New-to-Upwork/Tips-to-Avoid-Questionable-Jobs/td-p/240833

"Personal info: Clients do not need access to your personal information, driver's license, passport, social security number, tax forms, etc. Do not share this information. "

anyone an idea if Upwork has changed it again and now their are the ones that provide the invoice to the client under their Upwork name, address, tax nr etc?

 

 

 

 

 

1 REPLY 1
kochubei_valeria
Community Member

Hi Wim,

 

Thanks for sharing your experience with invoices. Currently, both the client and the freelancer can access invoices in their Transactions Report. Freelancers can find more information about how to access invoices and what's included in the invoice here and clients can find it here.

 

Freelancer's name (and not Upwork's) shows on the invoice in the "From" section and client's name will show in the "Bill to." If provided, the addresses will show as well (required if the client is located in VAT country.) Please, check this announcement for an example of an invoice as well as more information.

The freelancer and the client can also discuss what invoices they need to create in addition to the ones available in the Transactions report. If they have any additional questions, they may consult with a local tax adviser.

~ Valeria
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