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Upwork Charging GST for Australian Freelancers and Agencies

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

Hi Vince,

 

Please consult a local tax advisor regarding reporting your earnings and note that the announcement here is related to the GST being applied on the services Upwork provides to you as a freelancer.

Active Member
Julie M Member Since: Nov 8, 2017
32 of 40

I have an Australian ABN however I am not registered for GST. The Upwork website doesn't allow me to put my ABN in without being registered for GST. However I don't earn over $75,000/year. I'm not sure how to proceed with applying for some jobs via Upwork unless I say I don't have an ABN but I do. Please advise.

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

Hi Julie,

 

I moved your comment to this thread so you can check the announcement we posted and our follow-up clarification. Let us know if you have any questions.

Community Guru
Ramesh K Member Since: Oct 25, 2015
34 of 40

The following is a message I've got from one of the moderators of the forum in an another thread 

According to that I am afraid you will have to register for GST also.

***


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 articlehere.

 

If you have questions, let us know.

Community Guru
Petra R Member Since: Aug 3, 2011
35 of 40

@Ramesh K wrote:


According to that I am afraid you will have to register for GST also.


 No.

 

She can simply pay the GST on the Upwork fee, much the same as European freelancers pay VAT on the fees.

 

  • "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. "
Moderator
Joanne Marie P Moderator Member Since: Nov 26, 2017
36 of 40

Hi Ivanka,

 

You will need to consult with a local tax advisor so that you will be properly guided on the procedure in declaring your taxes as tax laws vary for every country. You can also check this help article for more information as well as this announcement. Thank you!

 


-Joanne
Untitled
Active Member
Ivanka G Member Since: Feb 17, 2018
37 of 40
Hi! I used to work as a freelancer in the Philippines and I have now relocated to Australia. I wanted to add my new bank account here in Australia in order to withdraw my earnings but my husband advised me to wait til I get my TFN. But the thing is all my earnings came through while I was in the Philippines, not Australia. So do I still need to declare the TFN? Will I get taxed in Australia even if I earned my funds in the Philippines? I now have my TFN but my husband told me that I might need to get superannuation first before I can withdraw my earnings. I'm not very familiar with taxes in Australia yet. Any sort of enlightenment will be appreciated. Thanks!
Active Member
Lynn M Member Since: Oct 29, 2015
38 of 40

Hello,

I just wrote a query to Upwork service desk, as I have returned to Australia and received a notice that I had to register for GST or would be charged 10% on some services. I have no clients at this time from Australia, so can you verify that the GST would ONLY be charged for money earned from a client who is resident in Australia? I just registered for GST yesterday, but my accountant has told me to unregister asap as it will cause more work for me. Can you please verify that I will NOT be charged GST for payments from any clients who are not resident in Australia?

Thanks!

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

Hi Lynn,

 

Please, note that Upwork will not charge you GST on fees you charge your Upwork clients for work you provide for them. Unless you provide a valid ABN number and acknowledge and aknowledge that you are registered for GST, Upwork will asses GST on fees for services provided by Upwork. That includes Upwork Service Fee and payments for Membership and Connects.

 

Please, see this help article for more information about that

~ Valeria
Untitled
Active Member
Lynn M Member Since: Oct 29, 2015
40 of 40

Can you please provide me the link to the information? The link provided (under "new law") returns a "page not found" ATO site. I don't understad how it works that if you must charge Australian residents GST, why me registering for GST means you then don't have to charge me. My registering for GST is about me having to charge it, not about being exempt from someone else charging it to me. If you are registered for GST and charging Australians, if you make a taxable sale of more than $82.50 (including GST), your GST-registered customers need a tax invoice from you to be able to claim a credit for the GST. Please confirm that you provide these invoices as required by law so I can be reimbursed for any GST you charge me.

Thanks! 

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