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Upwork Charging GST for Australian Freelancers and Agencies

Community Guru
Jennifer D Member Since: Feb 15, 2016
11 of 40

1) The link to the "new law" is broken, it should be this one (I don't know why the ATO didn't do a redirect on the old one).

 

2) As a client, I don't have to do anything, correct? There is still no place for me to add my company's ABN in my client settings, only a VAT ID.

Moderator
Vladimir G Moderator Member Since: Oct 31, 2014
12 of 40

Hi Jennifer,

 

1) The link to the "new law" is broken, it should be this one (I don't know why the ATO didn't do a redirect on the old one).

 

 

Thanks for the heads up. I checked the link in the opening post and it's possible the issue is with the source website, since the link you shared appears to be broken as well. I'll ask our team to follow up, confirm and update the links if needed.

 

2) As a client, I don't have to do anything, correct? There is still no place for me to add my company's ABN in my client settings, only a VAT ID.

 

While the GST fee Upwork is charging is being applied to services provided to freelancers and agencies, please speak with a local tax advisor regarding the GST obligations that may or may not apply to clients from Australia.

 

Active Member
Cathryn M Member Since: Jun 29, 2017
13 of 40

So, we're entering our ABN where it says 'VAT ID'?? I don't see any of the questions people are referring to about being registered for GST...?

Moderator
Valeria K Moderator Member Since: Mar 6, 2014
14 of 40

Hi Cathryn,

 

You should see a pop up asking you to enter your ABN and confirm you’re registered for GST when you log into your account on Upwork. Then you'll be able to access and edit it under Settings> Tax Information> GST.

~ Valeria
Untitled
Active Member
Nadee G Member Since: Oct 28, 2016
15 of 40

I agree that I would like to be able to add my ABN without registering for GST. 

 

I was advised by my business insurer that my insurance is tied to my ABN. I would like all my Upwork work to be covered by my insurer. 

 

I do not currently have to register for GST, and this is a legitimate reason for adding the capability for Australians to add an ABN without registering for GST. Since Upwork issues invoices to clients on my behalf, I'm unable to add my ABN to their invoice. 

Active Member
Pam F Member Since: May 3, 2016
16 of 40

Hi Lena, I would also like an answer from Upwork regarding this issue. I (and I'm sure many freelancers) have ABNs, but do not have to register for GST because we don't earn enough.

 

I'm happy to confirm my ABN number, but I won't say I'm registered for GST, because I'm not.

 

Where does this leave us? Why should we be charged GST on our work when we're not registered for GST? It doesn't make any sense.

 

I hope this can be resolved soon.

 

Many thanks,

Pam

Moderator
Vladimir G Moderator Member Since: Oct 31, 2014
17 of 40

Hi Pam,

 

To clarify, we will not be charging GST on the amount paid from the client to freelancer. GST is only being assessed on services provided by us, as Lena described in her earlier post, not on services you provide your clients.


@Lena E wrote:

Hi Maria and Hayley,

 

We understand that you may not be required to register for GST because the income for your freelance business is below the threshold. However, to comply with the new Australian laws, Upwork has to collect GST on the services we provide. You are not required to register for GST to use Upwork, but by not being registered you will pay the 10% GST tax on services (e.g. the sliding service fee you pay when you earn on Upwork, the fee you pay for a Freelancer Plus membership (if you have one), and the cost of purchasing additional Connects). 

You can find more information on GST here to decided if it makes sense for you to sign up. 


 

Active Member
Chau Woon M Member Since: Nov 18, 2016
18 of 40

GST registration is only mandatory for those people with high income, are they required to charge their clients GST for their services on Upwork? If not, then it is unfair to the low-income people, who need to pay more (the GST) while receiving less.

Community Guru
Jennifer D Member Since: Feb 15, 2016
19 of 40

@Chau Woon M wrote:

GST registration is only mandatory for those people with high income, are they required to charge their clients GST for their services on Upwork? If not, then it is unfair to the low-income people, who need to pay more (the GST) while receiving less.


 It's not about fairness, it's about Upwork meeting their legal obligations. A whole bunch of services I get from the US (including Netflix, for example) had to recently increase their prices to cover this new legal requirement for companies providing services in Australia to pay GST. If you have a problem with it, you're complaining to the wrong people. Complain to your government representative.

Active Member
Kshama W Member Since: Apr 24, 2017
20 of 40

Hi,

 

Upwork charges GST even for freelancers who have updated their ABN and GST details in June 2017 on Upwork.

 

Attaching my ABN and GST details so everyone in the community can see that Upwork is not following the rules set by Australian Tax Office.

 

ABN and GST details are available on the Australian Government website so there is no excuse for Upwork to have not verified this when the same was shared a month ago.

 

Regards,

Kay