*Update: the collection of Mexico’s Value Added Tax (VAT) will begin this week.
Starting in June, we will begin collecting Mexico’s Value Added Tax (VAT) when talent and clients registered in Mexico purchase Upwork services. We are required to collect this tax under Mexican law. VAT will be charged on the following:
- The amount talent pays for Connects
- Membership fees (for example, for a Freelancer Plus plan or Client Plus plan)
- Freelancer service fees
- Client payment processing fees
- Featured Jobs (tax will be applied to the cost of post, which is currently $29.99)
- Conversion fee (this is the fee you pay if you move a relationship off of Upwork)
Note: We will not charge VAT on the amount the client pays you for your services or on any withdrawal fees.
All taxes collected by Upwork will be passed on to the Mexican government, as required by Mexican law, and credited to the Registro Federal de Contribuyentes (RFC) that you have on file with Upwork. To learn more about our collection of Mexican VAT and how to add or confirm the RFC on your account, visit this help article and check the email we’ve sent you. You may also want to consult a tax professional for more information on how this new law and its exceptions may affect you and your business.
We’ll provide an update here and via email again in early June with the exact date when collection will begin. We will also provide our RFC once we receive it from the Mexican government.
