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I need help with VAT number

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Active Member
Robert P Member Since: Apr 25, 2017
1 of 9

Hi,

 

to complete my profil I needed to add a VAT number to my profile. I do have a VAT number, howerver it is a Hungarian VAT number and upwork does not seem to accept it.

I managed to find out that upwork wants a VIES number, which is different from the standard Hungarian VAT number, but the problem is that the Hungarian Tax Authourity can issue a VIES number only to enterpreneurs and companies. 

 

Do people work through upwork as enterpreneurs ?  If yes, how do issue an invoice for example someone who works in the Ukraine and works for someone in Australia ?

 

And if people don't work as enterpreneurs then what kind of a VAT number do they use ?

 

Thanks for all the answers in advance,

Robert

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Moderator
Valeria K Moderator Member Since: Mar 6, 2014
2 of 9

Hi Robert,

 

Correct, only VAT numbers that can be validated on VIES site can be added on Upwork. You may want to consult with a local tax tax adviser to find out more about how to classify your business and ways to report your Upwork income to your local authorities.

~ Valeria
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Robert P Member Since: Apr 25, 2017
3 of 9

Thanks Valeria,

 

your answer was somewhat helpful, but not  entirely. It is still not clear for me how employees are classified here on upwork. Don't you have any information about that ? Don't you have other members from Hungary ? I wonder if there is a way to ask them about the topic.

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Valeria K Moderator Member Since: Mar 6, 2014
4 of 9

Robert,

 

With few exceptions, freelancers who earn money through Upwork aren't classified as employees. Please, see this and this articles for more information.

~ Valeria
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Robert P Member Since: Apr 25, 2017
5 of 9

Hi Valeria,

 

it's getting celarer now, I did a little bit of reading in the help center.

 

So if I understand correctly upwork provides automatic  billing for freelancers. That is for example in case of hourly billing, freelancers download the Upwork Destkop App which they launch/stop according to their working ours. This app monitors their activity and upwork creates an invoice.

 

Could you show me an example photo/image of such an invocie ?

With a VIES number, in Hungary I must issue an invoice for the client, and I'd like to check that if this auto generated invoice can do the job i.e. if it's compatible with the local regulation. Otherwise I need to find a way to issue and send invoices to my clients.

 

 

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Valeria K Moderator Member Since: Mar 6, 2014
6 of 9

Robert,

 

In this post by Lena you can see screenshots of invoices.

~ Valeria
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Robert P Member Since: Apr 25, 2017
7 of 9

Thanks Valeria,

 

Don't you know if there is an electronic timestamp and a digital signature on the invocie ?  I cant see these on  what Lena linked.

 

Without these an electronic invoice is leagally invalid.

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Robert P Member Since: Apr 25, 2017
8 of 9

Okay so I asked the Hungarian IRS about the billing and they told me that olny those elenctronic invoices are accepted by them which are created by a billing software that they have acknowledged and gave permission to.

 

I think the invoices Upwork creates for me as a freelancer don't fall into this cathegory, but tell me in case I'm wrong.

 

 

So my problem is still the same:

To do my work through Upwork legally here in Hungary I need to issue invoices for my clients.  I can do this on paper or the electronic way, for both I need some contact info from my clients.

 

If I issue an invoice on paper, I need an address, if I give an electronic invoice I need an e-mail address from my clients.

 

Are any of these possible here on Upwork, and by that I mean is it not forbidden for both freelancers and clients to exchange  any contact information ?

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Moderator
Valeria K Moderator Member Since: Mar 6, 2014
9 of 9

Robert,

 

A number of freelancers located in the EU issue their own invoices to present to their local tax authorities if there are any specific requirements. You'll be able to view the client's address on invoices generated by Upwork as long as the client agreed to display it. You can also discuss this with a potential client and request them to provide information you need for reporting.

~ Valeria
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