I need some info about money transaction rules based on government policy between a freelancer and a company for a contact work.
It has been almost 7 years since i am doing freelancing. And all of my payments was given through paypal or payonner(payonner is the master card provider for those who works through upworks). But I never was needed to provide any vat/IVA/abn/TIN number or any kind of identification as an entity to receive the payment from Clients(individuals/company).
But paypal or payonner always have provided a transaction number as a proof of transaction through my mail .
And that is what i had to forward through mail to payer’s email.
That was the whole process.
Recently I did a contact work for a company.
During payment, i was asked to provide ** a receipt containing a vat number to proof me as a legal entity**.
Most probably Vat number also known as IVA in Italy, abn in Australia or TIN(Taxpayer’s Identification Number ).
I was wondering if it is a compulsory thing for a company to handover payment to a freelancer?
If it is compulsory then why it was never asked to me !!!
and what’s the difference between invoice and receipt?