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VAT for EU freelancers & agencies

Community Manager
Lena E Community Manager Member Since: Apr 7, 2015
1 of 844

*** This announcement pertains ONLY to EUROPEAN UNION Freelancers and Agencies ***

 

To better meet the needs of our local markets, Upwork will soon begin to charge VAT on Upwork service fees, memberships and additional Connects and remit those charges to EU governments. Freelancers and agencies that enter a valid VAT number on Upwork will not be subject to these charges.  Upwork will also provide certain freelancers and agencies the ability to reverse charge VAT for services supplied to their EU clients. 

 

Beginning December 1st (**Edit** After November 16th, for Spain and Ireland), Upwork will automatically calculate the country-specific VAT for freelancers and agencies from the EU. Freelancers and agencies with VAT numbers can add them today on the Tax Information page located in User Settings. After your VAT number is entered, Upwork will validate the number and send you an email confirming if your VAT has been validated or declined.


VAT setting.png

If you do not have a VAT number, this tax will be applied to the Upwork service fee and this tax will be remitted on your behalf. VAT charges will also apply to purchases of premium Upwork subscriptions and additional Connects. You’ll see this as a separate VAT charge on your transaction page.

 

Those with a VAT number will not be subject to this tax. But we will print “VAT Reverse Charged” on your invoice and you may be required to self-assess VAT on your VAT return under the reverse-charge mechanism applicable to ESS.  If you are working with a client that also has a VAT number and does not operate in your same EU country, Upwork will add “VAT Reverse Charged” to the invoice from you to your client so that your client can self assess VAT.

 

Check out our help article here if you have any questions or send us them below. **** A SECOND THREAD WITH FAQs WHICH ADDRESS YOUR QUESTIONS CAN BE FOUND HERE. ****

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Community Guru
Nikhil D Member Since: May 28, 2015
2 of 844

Will it be applicable to one and all? Or just for freelancers in EU? I am in India and we don't have VAT implemented. Clarification will be hugely appreciated.

 

Community Manager
Lena E Community Manager Member Since: Apr 7, 2015
3 of 844

This only applies to freelancers and agencies in the EU

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Active Member
Danielle S Member Since: Oct 28, 2015
4 of 844

how is vat apply to UK freelancers, as i know only service chargers are paid by employees. I am a freelancer so how that effect to me? as i freelancer do i have to pay VAT?

 

Danielle

Active Member
Salamon Z Member Since: Jan 26, 2015
5 of 844

for the agencies in EU. We have a small busnines and we do not pay VAT(only 3%). What we should do?

Community Guru
Joachim M Member Since: Mar 23, 2015
6 of 844

@Salamon Z wrote:

for the agencies in EU. We have a small busnines and we do not pay VAT(only 3%). What we should do?


Salamon,

 

As your profile is set to private I can't see where you are located. Are you located in the EU? 

Active Member
Salamon Z Member Since: Jan 26, 2015
7 of 844

Romania

Active Member
Lavinia M Member Since: Jul 17, 2015
8 of 844

thought you are from Ro as you mentioned the 3% tax on revenue.

 

micro companies that pay 3% revenue tax can choose to either pay VAT or not. After you reach 65000 eur in revenue, as a microcompany, you will have to pay VAT, nontheless.

Community Guru
Joachim M Member Since: Mar 23, 2015
9 of 844

@Lavinia M wrote:

thought you are from Ro as you mentioned the 3% tax on revenue.

 

micro companies that pay 3% revenue tax can choose to either pay VAT or not. After you reach 65000 eur in revenue, as a microcompany, you will have to pay VAT, nontheless.


Lavinia,

 

What you say is not correct. You always pay VAT on your purchases. You can only be exempt from CHARGING VAT on the services you sell to your clients. Or can you drive up at your petrol station and say "Hey guys, I'm a micro company there I don't have to pay the VAT you included in the price for petrol" 

Active Member
Kaiuam M Member Since: Dec 1, 2015
10 of 844

The tuition fees paid by the private university students includes value added tax (VAT). So, there is no scope of increasing tuition fees for private university students.

 

In a clarification, the National Board of Revenue (NBR) said VAT was not imposed on students afresh. It is the responsibility of private universities to pay the VAT, and not of the students in any way.

 

Thank's

kaiuam mirza

Kaiuammirza
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