How contractor invoicing works

Contractors can create and add their invoices for payment at any time of the month.

This article covers the following topics:

• How to create and submit an invoice
• How to add VAT to an invoice
• Managing invoices
• Paying out funds

As a contractor, you can submit your invoices from the Invoices tab by clicking on the Create Invoice button. You will have two options:

• Upload: You will create an invoice that includes the invoice date and invoice amount. You can then submit the invoice as a PDF. If you add VAT, you will also enter the net amount, VAT rate, and VAT amount for the invoice.
• Create:
• 1. You will be prompted to choose your Withdrawal method and the invoicing currency is assigned based on your Withdrawal method.
  2. Under Billable items:
  3. • You can choose to add your billable items based on your hours worked (using the Time tracking feature). VAT isn't available for these items.
     • You can add your invoice items manually. If you add VAT, each item includes a net amount, VAT rate, VAT amount, and gross amount.
       
       
  3. If you have an expense that needs to be reimbursed, you can add this to your invoice. You can add expenses to an invoice that includes VAT, and they are handled the same way as before.
  4. You can also create a recurring invoice that is automatically sent to your company admin based on the frequency you set. VAT isn't available for recurring invoices.

You have the option to set your desired invoice amount in your local withdrawal currency, or your company admin’s billing currency. Depending on your choice, Remote will automatically convert the funds received from your company admin to your local withdrawal currency. For payments processed via Wise/Remote Payments, Remote will guarantee that you receive the full invoiced amount in your local currency and protect you from currency fluctuations.

If you're a Contractor Management or Contractor Management Plus contractor, you can add value-added tax (VAT) to one-off invoices that you create or upload. VAT fields are hidden by default.

To add VAT to your invoice:

1. When you create or upload an invoice, turn on Add VAT.
2. Enter the VAT details for your invoice:
3. • Create: For each billable item you add manually, enter the net amount and VAT rate. Remote automatically calculates the VAT amount and gross amount. You can change these amounts manually if needed, and you can use VAT rates with decimals (for example, 7.5%).
   • Upload: Enter one net amount, VAT rate, and VAT amount for the uploaded invoice. All three fields are required. Remote doesn't extract these figures from your PDF, so make sure they match your invoice. The net amount plus the VAT amount must equal the invoice total.
3. Check the VAT/tax ID shown on the form. This ID comes from your profile and can't be edited on the invoice form. If you haven't added an ID to your profile, this field is empty.
4. Submit your invoice.

Remote remembers whether you added VAT for each contract, so you don't need to turn it on every time. If you turn off Add VAT, any VAT details you entered are cleared.

Checks before you submit

• If the VAT amount doesn't match the VAT rate, you will see a warning. You can still submit the invoice.
• If the net amount plus the VAT amount doesn't match the gross amount or invoice total, you can't submit the invoice until you correct it.

Expenses and VAT

You can add expenses to an invoice that includes VAT. Expenses are handled the same way as before, and Remote doesn't automatically include them in your invoice's VAT calculation.

When your company admin reviews your invoice, they will see the VAT breakdown on the invoice and in the invoice PDF.

VAT is only available for one-off invoices that you create manually or upload. It isn't available for invoices created from time tracking or for recurring invoices.

You can view all the invoices you have submitted from the Invoices tab. Your invoices will be broken up into those that are one-time invoices, those that are recurring invoices created by you and those created by the Customer. Once you've submitted your invoice, if it hasn't been approved and paid for yet, you can delete it and submit a new one.

Once you submit your invoice, your company admin is notified. They will need to first approve the invoice and make payment for it. Once we receive payment from the client, we pay out the funds to you. The amount of time it takes for us to receive payment from the client largely depends on the payment method they use when making payment to us.

See also:

• What do the contractor invoice statuses mean?
• Contractor invoicing currency and guaranteed payouts

This is how long each payment method takes: