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Upwork Charging GST for Australian Freelancers and Agencies

lenaellis
Community Member

Recently, Australia introduced a new law applying their Goods and Services Tax (GST) to international sales of services and digital products provided to Australian consumers. This change means that non-Australian businesses (like Upwork) will be required to collect GST on our sales to Australian users starting July 1, 2017.

 

As a result, we’re asking freelancers and agencies in Australia to do the following:

  1. Provide their Australian Business Number (ABN)
  2. Acknowledge they’re registered for GST

 

To provide your ABN number and acknowledge that you are registered for GST, go to Settings > Tax Information, or click here.

 

Users who provide their ABN and GST info to Upwork will not be charged GST by Upwork.

 

 

If you’re an Australian freelancer or agency and you’re not registered for GST or do not have an ABN, Upwork is required to charge the 10% GST on applicable Upwork fees (e.g. Upwork service fees, membership fees, and purchases of additional Connects) and report it to the Australian Taxation Office. These freelancers and agencies will see this GST charge as a separate amount on their Transaction History page and invoices from Upwork to you.

 

Here’s an example of how it would work:

 

Your contract amount

$100.00

Upwork service fee (20% x $100)

-$20.00

GST on the service fee (10% x $20)

-$2.00

Take home earnings after fees and GST

$78.00

 

 

For more information on applying for an ABN, see here

For more information on registering for GST, see here

For more information on our GST policy, please see the help article here.

 

If you have questions, let us know.

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