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Ask HN: How to get invoices from un-registered freelancers?

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Re: Ask HN: How to get invoices from un-registered freelancers?

#11

I'm confused - an invoice is just a statement of what is owed. It isn't a formal legal document. So I'm not sure what their setup has to do with it, or what you mean by "has zero legal value"?

In all EU countries an invoice (tax receipt) is a legal document very exactly specified by local law as well as EU regulation, and you can't move a cent without it - you won't be able to claim the expense (subtract from tax base = pay income tax on profit only) if you don't have it.

Re: Ask HN: How to get invoices from un-registered freelancers?

#12
As a "freelancer" living in/working from a country where there is no legal concept of being a sole-trader/freelancer/self employed without a registered business entity, I would say this:

It's not your problem. There is exactly one thing your company can do (which defeats the whole purpose): open a branch office in their country and employ them as a regular role.

If you're not doing that, how they issue you an invoice is irrelevant to you.

Re: Ask HN: How to get invoices from un-registered freelancers?

#13

I'm confused - an invoice is just a statement of what is owed. It isn't a formal legal document. So I'm not sure what their setup has to do with it, or what you mean by "has zero legal value"?

In all EU countries an invoice (tax receipt) is a legal document very exactly specified by local law as well as EU regulation, and you can't move a cent without it - you won't be able to claim the expense (subtract from tax base = pay income tax on profit only) if you don't have it.

I'm an American working for an Italian company as a freelancer, and I just print a generic invoice from Harvest (time tracker). I've also seen us pay other freelancers who make simple PDF invoices from web templates.

Have we been doing it completely wrong this whole time...?

Re: Ask HN: How to get invoices from un-registered freelancers?

#14
> But our company needs legal invoices Needs or wants?

VAT taxes and such are the responsibility of the seller, not the buyer. Your freelancers can make their invoices in Excel or Pages, send them to you and you pay. There is no reason that there would be an issue. Sometimes a company has accountants who are lacking and only know how to do one thing, unwilling to learn. I highly doubt his/her claims that all invoices have to come from a registered business entity. But for these kind of questions you need to tell which country you're to get the most precise answers.

Re: Ask HN: How to get invoices from un-registered freelancers?

#15

Earlier quoted context omitted.

In all EU countries an invoice (tax receipt) is a legal document very exactly specified by local law as well as EU regulation, and you can't move a cent without it - you won't be able to claim the expense (subtract from tax base = pay income tax on profit only) if you don't have it.

I'm an American working for an Italian company as a freelancer, and I just print a generic invoice from Harvest (time tracker). I've also seen us pay other freelancers who make simple PDF invoices from web templates. Have we been doing it completely wrong this whole time...?

No, you haven't done anything wrong. Some people are just paranoid-compliant to the maximum level. Unless a company is doing actual money laundering or financing terrorists, the tax auditors won't give a damn about some wrongly formatted invoices from freelancers, as long as they are based on reality.

Re: Ask HN: How to get invoices from un-registered freelancers?

#16

Earlier quoted context omitted.

I'm an American working for an Italian company as a freelancer, and I just print a generic invoice from Harvest (time tracker). I've also seen us pay other freelancers who make simple PDF invoices from web templates. Have we been doing it completely wrong this whole time...?

No, you haven't done anything wrong. Some people are just paranoid-compliant to the maximum level. Unless a company is doing actual money laundering or financing terrorists, the tax auditors won't give a damn about some wrongly formatted invoices from freelancers, as long as they are based on reality.

Ok, phew, thanks for the reality check! We don't finance any terrorism (unless you count the quality of my code). We're just a small company without a big legal/accounting dept.

Re: Ask HN: How to get invoices from un-registered freelancers?

#17

Earlier quoted context omitted.

No, you haven't done anything wrong. Some people are just paranoid-compliant to the maximum level. Unless a company is doing actual money laundering or financing terrorists, the tax auditors won't give a damn about some wrongly formatted invoices from freelancers, as long as they are based on reality.

Ok, phew, thanks for the reality check! We don't finance any terrorism (unless you count the quality of my code). We're just a small company without a big legal/accounting dept.

PDF invoices are nothing wrong. As long as you're not a VAT payer there are just basic requirements (vendor/customer ID and address, invoice number). Most likely yours is compliant - but you need to provide it.

Re: Ask HN: How to get invoices from un-registered freelancers?

#18

Earlier quoted context omitted.

In all EU countries an invoice (tax receipt) is a legal document very exactly specified by local law as well as EU regulation, and you can't move a cent without it - you won't be able to claim the expense (subtract from tax base = pay income tax on profit only) if you don't have it.

I'm an American working for an Italian company as a freelancer, and I just print a generic invoice from Harvest (time tracker). I've also seen us pay other freelancers who make simple PDF invoices from web templates. Have we been doing it completely wrong this whole time...?

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