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Russian VAT on Upwork - hello, work in white?
We are writing to let you know that Upwork will begin collecting Value Added Tax (VAT) from freelancers and agencies who use Upwork in Russia.
The 20% tax will be applied only to Upwork service fees, not earnings from your clients.
Currently we are registering with the Russian government and will let you know when we start collecting VAT. No action is needed at this time.
Apparently, they will begin to exchange data with the Federal Tax Service.
As for me, it will be easy to run into an additional income tax charge.
What is your opinion gentlemen?
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Everything strongly depends on the technical implementation and the desire of the Federal Tax Service to catch freelancers.
In my mind, Upwork's VAT payment alone doesn't mean they'll share freelancer income data. They will be required to provide information about their income. Although, if desired, it is quite possible to get one from the other. It's about the amount of money.
The very fact of some uncertain income will be very easy to verify, because Upwork will be required to report who purchased its services (paid a commission). And the only service on Upwork is the opportunity to earn money.
I think for those who work in white, this news is only for the better. No more tax gophers and Google taxes.
You will be discovered even without it: Banks began to block freelancer accounts
It's better that way.
And then I was registered with a contract, and the statement shows that I pay agency fees, but I did not pay taxes for them.
This fact strained me, so as not to be asked.
Well, now you can sleep peacefully)
Everyone is so worried about taxes, while forgetting where these taxes go (to whose apartments), someone even remembered a pension.)) In no case do I agitate not to pay. Still, it's nice to see people who manage not to.
Above they offered a great option, if you are not rich and do not receive millions - keep it on the same payoneer, and if there are a lot, then a patent, ok.
20% is not the whole amount.
But only from paying for Upwork services.
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