Confused about VAT - Time sensitive Issue

[67a78c8f]

Hi guys, 

I'm new to the platform and have a time-sensitive question. I'm about to acquire a long and big project. The client is an American company and my freelance business is registered in The Netherlands, so there should be no VAT tax. I just Googled how Upwork works with VAT and apparently I need to put my VAT number as my invoice is charged to Upwork? 

Should I wait with confirming the client before this is sorted? I sent a contract and I believe the client hasn't accepted it yet, meaning that I believe no deal is made. The project is on Tuesday and there's travel involved so the sooner I can confirm them the better. If I don't sort my VAT number out before the project is accepted do they charge an additional 21 percent above the pretty steep Upwrok percentage? 

And where can I add my VAT number? Another important bit of information is that I'm currently in Berlin, so I put my account location here, but my VAT number is for a freelance company based in The Netherlands, can this intervene with this process, and if so how to solve it? 

Sorry for the many questions, but as you can see I'm very confused and want to have this sorted as soon as I can. 

Thanks in advance. 

[67a78c8f]

Hi fellow freelancers, 

I'm new to the platform and have a time-sensitive question. I'm about to acquire a long and big project. The client is an American company and my freelance business is registered in The Netherlands, so there should be no VAT tax. I just Googled how Upwork works with VAT and apparently I need to put my VAT number as my invoice is charged to Upwork? 

Should I wait with confirming the client before this is sorted? I sent a contract and I believe the client hasn't accepted it yet, meaning that I believe no deal is made. The project is on Tuesday and there's travel involved so the sooner I can confirm them the better. If I don't sort my VAT number out before the project is accepted do they charge an additional 21 percent above the pretty steep Upwrok percentage? 

And where can I add my VAT number? Another important bit of information is that I'm currently in Berlin, so I put my account location here, but my VAT number is for a freelance company based in The Netherlands, can this intervene with this process, and if so how to solve it? 

Sorry for the many questions, but as you can see I'm very confused and want to have this sorted as soon as I can. 

Thanks in advance. 

[67a78c8f]

Hi fellow freelancers, 

I'm new to the platform and have a time-sensitive question. I'm about to acquire a long and big project. The client is an American company and my freelance business is registered in The Netherlands, so there should be no VAT tax. I just Googled how Upwork works with VAT and apparently I need to put my VAT number as my invoice is charged to Upwork? 

Should I wait with confirming the client before this is sorted? I sent a contract and I believe the client hasn't accepted it yet, meaning that I believe no deal is made. The project is on Tuesday and there's travel involved so the sooner I can confirm them the better. If I don't sort my VAT number out before the project is accepted do they charge an additional 21 percent above the pretty steep Upwrok percentage? 

And where can I add my VAT number? Another important bit of information is that I'm currently in Berlin, so I put my account location here, but my VAT number is for a freelance company based in The Netherlands, can this intervene with this process, and if so how to solve it? 

Sorry for the many questions, but as you can see I'm very confused and want to have this sorted as soon as I can. 

Thanks in advance. 

[759e32fa]

Hi Oscar,

You can add your VAT number by going to the Settings > Tax Information page.

If you submit a tax ID for a business, you must provide a document showing you own the business for VAT to be approved. You can check if your VAT number will be validated on the VIES website here. After you submit your VAT number to Upwork, we will validate the number, then email you to confirm whether it was validated or declined. It typically takes up to 3 business days for Upwork to validate your VAT number. Feel free to check out this help article for more information.

[67a78c8f]

Hi Annie, 

thanks for your reply and help! 

My main question is(couldn't find it in the article) what you exactly mean by having to charge VAT when your company sends an invoice? Do you mean that if I click accept on the offer or the client clicks accept on my offer, VAT will be charged on that project even if the VAT number is verified by your company during the project? Or do you mean VAT is charged if the VAT number has still not been verified once the project is finished and I try to deduct the funds from their account? 

I got an email telling me the VAT number of mine(wich is a valid VAT number) wasn't right. I'm currently staying long term in Germany, but my freelance company is registered in The Netherlands. Is having my address in Berlin, but my VAT number registered to a Dutch company definitely the problem? Or does that not have to be the issue and could it be something else? Today I changed my address to my Dutch address and tried resubmitting the VAT number. 

best regards, 

O

[LuiggiR]

Hi Oscar,

VAT is assessed on digital services provided by Upwork (i.e. service fees, membership fees, and connect purchases), not on services freelancers and agencies provide their clients. VAT isn't charged if you provide a valid VAT number. You may want to consult the help article Annie shared before for more information. Note that we can't provide tax advice so it will be best for you to consult a local tax professional.