Upwork is registered in the Russian Federation

    Upwork company has notified customers from the Russian Federation that it will soon begin to collect VAT for service services from freelancers and agencies. A tax of 20% will be collected from the fee for using the service (the amount received from the customer is not taxed).

    The registration procedure for Upwork in the Russian Federation has not yet been completed; the exact date for the start of VAT collection will be announced later. No action on the part of freelancers is yet required.

    For clarity, an example. Vasya received $ 100 from the customer. Vasya has been working with this client for some time, so the service fee is 10%. Total, Vasya will receive $ 100 - 10% - 10% *% 20 = $ 100 - $ 10 - $ 2 = $ 88.

    Previously, freelancers had to act as a tax agent and pay VAT themselves for the services of the service (with all the resulting reporting). Since January 1, the simplified tax system was relieved of this obligation.

    The fact that Upwork is registered in the Russian Federation indirectly suggests that it is time for those who remain in the shadow to open IP. Self-employed while working with foreign clients will not work .

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