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Questions and Answers
What is the correct way to account for expenses advanced to a client?
When a freelancer advances expenses to their client, which of the following must they account for?
How should a freelancer handle chargebacks?
When invoicing, what must freelancers separate?
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What type of tax should be applied to a meal bill?
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When a meal bill is taxed at 10%, what must the freelancer re-invoice it at?
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What can freelancers do with expenses incurred on behalf of their customer?
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What type of invoice should a freelancer issue for expenses incurred on behalf of the customer?
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What type of tax is applied to the margin a freelancer makes on re-invoicing?
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If a freelancer makes a margin on their re-invoicing, what will they be taxed on in principle?
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Study Notes
- When a freelancer advances expenses to their client, they must account for these expenses in a specific way, which must be respected if the client makes a chargeback.
- Chargebacks are not uncommon, and freelancers must take into account chargebacks when invoicing and collecting payments.
- Freelancers must separate disbursements from fees when invoicing, and must collect the reimbursement of disbursements when the client pays.
- Freelancers must account for chargebacks when invoicing and collecting payments, and must make a margin on this type of operation.
- A meal bill taxed at 10% will have to be re-invoiced to the client at 20% VAT.
- The expenses incurred on behalf of your customer can be expensed.
- If you make a margin on your re-invoicing, you will in principle only be taxed on this margin.
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Description
Test your knowledge on managing expenses as a freelancer, including accounting for client chargebacks, separating disbursements from fees, and invoicing for expenses with VAT. This quiz covers important aspects of financial management for freelancers.
