What we watch for
| Topic | What matters |
|---|---|
| Invoices to EU companies | reverse charge under Art. 21(2) VAT Act; registration under Art. 97a; VIES return due by the 14th |
| Clients outside the EU (US, UK) | supply deemed performed outside the EU — no VAT, with the correct legal basis stated on the invoice |
| Upwork, Fiverr, Stripe, Payoneer | accounting for platform commissions, exchange-rate differences, reverse charge on platform fees |
| Salary or dividend | optimal combination of self-insured-person contributions + 5% dividend; comparison with an employment contract |
| Crypto assets | declaring income from disposals; accounting treatment as an asset |
| Software and subscriptions | expenses for cloud services from abroad — protocol under Art. 117 and VAT deduction |
EOOD or freelance/sole-trader status?
At income up to roughly €30,000 a year and low expenses, freelance/sole-trader status is often cheaper (25% statutory expense allowance, no annual financial statements). Above that level, or with EU clients or plans to hire staff, an EOOD gives a lower effective rate and limited liability. See the full breakdown: legal-forms comparison.
How we work
Documents due by the 5th, VAT by the 14th, payroll and social contributions by the 25th, a monthly summary in plain language, and year-end closing at no extra charge. Full process description: Accounting services →
Frequently asked questions
Do I need VAT registration if I only work for US clients?
+−
Not under Art. 96 — the supplies are deemed to be performed outside the EU. If you receive services from the EU (e.g. Google Ads, Adobe), registration under Art. 97a is required.
How is income from Upwork taxed?
+−
As income from business activity, or through your company. The platform withholds a commission — the gross amount is revenue, and the commission is an expense. We keep the platform statements as the primary supporting document.
Can I pay myself only a dividend, without social contributions?
+−
Only if you perform no personal labour in the company. If you are actively working, the NRA requires you to be insured as a self-insured person.
Other industries and useful links
Accounting for online stores, restaurants, construction. Our full price list with add-ons for volume and staff — Pricing; monthly deadlines — Working days 2026; glossary of terms — Glossary.
Sources
Corporate Income Tax Act; Personal Income Tax Act; VAT Act (State Gazette issue 115/30.12.2025); Social Insurance Budget Act for 2026; Accountancy Act; Ordinance N-18. Verified on 3 September 2026.
Important
Bulsmetka is a private accounting firm, not a government authority. This information is of a general nature and does not replace individual advice. State fees are invoiced at cost.