How does Abillio work?
Freelancing can be an incredible journey – it opens up opportunities that many people dream of such as being location independent, choosing your own clients, offering services based on a skill that you really enjoy and many more, yet it also creates its fair share of challenges. These challenges are mostly around meeting the requirements of clients, such as business-friendly invoices, legal documentation (contracts, copyright transfer, etc.), having a VAT number, paying tax, as well as chasing late payments.
Abillio, your all-in-one platform for invoicing, accounting, and payments, can be of great support for this as it offers solutions to these challenges, without you having to open your own company.
But how does it really work?
Abillio can be used by freelancers from 220 countries globally and essentially Abillio offers freelancers sending business-friendly invoices that include a VAT number and automatically calculates the VAT amount for invoice. Freelancers can currently invoice 5 different currencies (USD, EUR, CAD, AUD, GBP) and even get legal documentation and streamlined service agreements. Essentially, it takes the burden away of you needing to open your own company and allows you to send invoices within minutes.
What do I need to start using Abillio?
Setting up your account is very easy and won't take more than a few minutes. There are two verification processes you must go through – your identity (KYC) and bank verification (this applies only to freelancers with tax resident in Latvia or for global freelancers that exceed the monthly payout limit of 2500 EUR, read more here).
Here's a video guidance on setting up your account:
What does the invoice look like and how can my client pay it?
We accept SEPA and SWIFT payments, soon we will introduce card payments, Crypto payments, PayPal, Stripe payment links and recurring card payments. When paying the invoice client has to write the invoice number in the payment reference field, otherwise linking funds to your invoice might delay.
How can I receive the payment?
We currently support payouts in 5 currencies (USD, EUR, CAD, AUD, GBP) to PayPal, Swift, Sepa, Crypto (Stablecoin), and payments to cards.
Do I get my own TAX ID and VAT ID?
Since you will become a partner of Abillio, you will issue an invoice in the name of Abillio company with Abillio TAX ID and VAT ID. Using Abillio's VAT ID gives you the ability to invoice and get paid from customers and marketplaces globally, so you don't have to deal with VAT registration and accounting yourself.
What happens with VAT (Value Added Tax)?
Depending on the country you live in and the country you are invoicing to, you might have to pay VAT from your income, however due to tax regulations that will mostly impact freelancers in Latvia and Estonia, as well as if your clients are not VAT registered or an individual. The rest will apply 0%. Read more here to find out how VAT applies to your case.
What about my personal taxes?
In Latvia, Abillio is authorized to pay your taxes for you, however if your tax residency is elsewhere, you will have to take care of your taxes yourself. Here you can find tax regulations for freelancers in Lithuania, Estonia, Poland, Hungary, Austria, The Netherlands, Romania, Portugal, France, Germany, Belgium and the UK. If your country is not in this list, the best would be to reach out to your local tax authority and find out what tax you are expected to pay in your tax residency.
How much does it cost and how fast will I receive the payment?
Using Abillio's services is simple and transparent – pay-as-you-go with no monthly commitment. You will be able to preview the amount available for withdrawal before sending the invoice. Abillio keeps a 5% service fee from each payout. * FX and bank fees not included.
Here's the list of bank and FX fees:
For EUR payments in SEPA (Eurozone) payments are 0,80 EUR and they are processed in one working day, basically the same day.
International payments in SWIFT payments can cost up to 15$ and take up to 3 working days.
ACH payments (for USA-based accounts) are processed the same day and cost 0.80 EUR.
If you’re sending other currency rather than the one that is supported by your bank account, there might be some FX fees on top (Forex Exchange).
Are there any limitations?
We don't support services that require license, and financial and accounting services, and selling goods (except digital goods).
Invoices exceeding EUR 10,000 may be subject to an additional check and a simple ask to explain the nature of the transaction and the origin of the money under AML requirements.
What about my social and health benefits?
Abillio does not cover National Insurance or Social Contributions, however we can offer 30% off from global health insurance by SafetyWing.
Since Abill.io is not an Employer Of Record, nor your employer, receiving payments from Abill.io are treated as profit share from the partnership, this income does not affect your social security benefits like parental leave, unemployment benefits, dependent status (Apgādājamais), or any other.