As of today, June 15th, PeoplePerHour.com has introduced 3 important changes in the invoicing process, all aimed at improving functionality and making the procedure as simple as possible for our users. Please make note of the changes as explained below.
Change 1 – Billing amount to be inclusive of VAT
In order to avoid any confusion caused by having to calculate the NET amount to be invoiced/paid once the VAT is added, PeoplePerHour.com has now changed the billing form so that the amount invoiced is inclusive of VAT as is the bid amount. The system will back-calculate the NET amount and the VAT based on the rate specified (VAT differs from country to country) and depending on whether the freelancer is VAT registered.
The Freelancer’s bid amount has always been and still is inclusive of any VAT, unless explicitly stated in the Bid Description that the VAT is not included in the amount. With the above change, the bidding and invoicing are thus consistent.
Change 2 – Billing option for multiple periods
Although PPH users already have the option of specifying in their invoice description that they are billing accordingly for multiple periods within a job, so far it was not possible to itemize the invoice amount into different billing periods e.g. week / days of work. Rather than specifying one total amount you can now break the job down into units of time offering the client more transparency on your billing.
Change 3 – Client Payment Terms
Following the changes to our Terms and Conditions made at the start of the year, it has recently been brought to our attention that our payment terms had not yet been updated in line with the tightening of our T&C’s. We have, however, now updated the payment terms in order to reflect the changes made in January.
Please note that payment terms are as follows:
a) for an Hourly/Commission job, invoices are to be paid within 7 days
b) for a Fixed job, invoices are to be paid within 15 days
Freelancers should not attempt to chase up Clients regarding payment before the above time-periods have been exhausted. Please also note that the option to send the Client a reminder to pay an invoice will not appear on Freelancers’ screens before these dates.
