Having some problems figuring out the new freelancer invoice system
It doesn’t help that it seems the program was not communicated clearly to the freelancers themselves, so I don’t blame them for coming up with seemingly different calculations for each person.
Situation:
I am a business owner and work with freelancers. Their invoices often look like this:
Fee for service rendered ¥XX
Expenses (exact amount spent) ¥XX
I received an invoice in which an unregistered freelancer took the required 10.21% withholding from the “fee for service rendered” line,subtracted it from the same line, then added the full “expenses” line to come up with a number. In no where does consumption tax come in to play for service rendered.
While a different unregistered freelancer treats it as “fee for service rendered includes consumption tax”. And then removes withholding from that.
Neither of them include the “expenses” line in the consumption or wh calculations.
Are either of these correct? Are they both doing it wrong?
by the-T-in-KUNT