What you need to know about the new EU tax law

[#1]

A new EU regulation known as DAC7 requires that digital platforms like Upwork collect and report tax information. Starting in 2023, the new law applies to freelancers and businesses based in the EU.

What is DAC7?

DAC7 requires digital platforms, such as online marketplaces, to share information about financial transactions with the governments in the EU countries where their customers or service providers have a tax residence. It ensures that digital services are tracked and reported to the proper tax authorities.

When will I get a DAC7 report?

For tax year 2023, your DAC7 report will be available starting January 31, 2024, in tax forms; we’ll email you when it’s ready.

Who is eligible to receive a DAC7 report?

If in 2023 you signed up with Upwork, had financial activity, and are located in an EU country, you’re eligible to receive a DAC7.

What information does DAC7 include?

DAC7 contains financial information about your activities on Upwork, including your 2023 net income, commissions, taxes, and transactions, which are sent to applicable governments in EU countries.

Need some help? Check out our FAQs or reach out to customer support.

[#2]

Hi Deborah, 

Here's what we have in the help article which you can visit on this page: 

A Form DAC7 will contain all of your Upwork transactions, which we report by quarter, including:

• Total of net earnings (USD): Net earnings are calculated by deducting any refunds, taxes, fees and commissions paid during the period from your total gross earnings
• Total fees and commissions (USD): Fees and commissions include all the payments you make to Upwork, such as Connects purchases, payment transfers, and freelancer service fees, for example
• Total taxes (USD): Taxes include your country's income taxes, withholding taxes, and any other taxes that Upwork must collect in order to comply with local tax laws
• Total number of transactions: Number of transactions includes all earnings, and indicates the total amount of transactions in each quarter

[#3]

Is there a way to see an example copy of how it will look like, that is an example copy of upwork's DAC7 ? It would be easier to get a better understanding for those of us that process visual images better.

[#4]

Hi Yasmin, 

We don't have an available sample right now, but if you are eligible to receive it, you will be able to access and download the form by going to Settings > Tax Information > Tax forms. We'll also email you when your DAC7 is ready with a link to the Tax Information page. 

[#5]

Thank you Avery!

[#6]

Hello, 

So in 2023 until December i was registered as an Individual, in December i switched my tax information to my company. 

The problem is that Upwork issued my DAC-7 form and all the earnings are reported on my company's name.

I should've received 2 DAC-7 forms, one for individual until December and one for my company in December.

I have contacted support and they told me they can't do this because they can only issue one per account, which is totally INCORRECT.

It is Upwork's duty to issue the DAC 7 form correctly. What can i do in order for this to be solved? 

[#7]

Hi Eduard-Costin, 

I checked and can see that the Upwork Support Team has continuously assisted you through your open support ticket. They will share more information with you once they hear back from the relevant team. As noted on the ticket, getting the needed info may take some time. Just the same; thank you for being patient with us as our teams look into this further. 

[#8]

I have a question. I have been registered for January with my EU residency but left the country and moved to South America recently. Will UpWork report all of my 2024 earnings to the EU? Or just the January?

[#9]

I have a question. I have been registered for January with my EU residency but left the country and moved to South America recently. Will UpWork report all of my 2024 earnings to the EU? Or just the January?

[#10]

Hi Matthias,

DAC7 impacts residents of EU member states who earn revenue on Upwork. If your primary residence is not in an EU member state, DAC7 does not apply to you. If you move your primary residence into, or out of, an EU member state, you must update your tax information.

If you are a freelancer or business with financial activity in 2023, who signed up with Upwork in 2023, and you are located in an EU country, you are eligible to receive the Form DAC7 for 2023.

For tax year 2024, any freelancer or business with earnings on Upwork will be eligible to receive a Form DAC7 from us regardless of when you signed up. That means that you will receive a DAC7 from us in 2025 if you have earnings in 2024.

[#11]

Will there be a PDF or otherwise downloadable version of the form? Trying to print the form as shown on the website gives a rather unusable result with cropped parts and duplicated content.

I would like to save a PDF copy of the DAC7 form for future needs.

[#12]

Hi Rodolfo,

We’ve escalated your community post to a support ticket. One of our agents will be in touch with you soon to assist.

[#13]

I've been attempting to contact someone directly, but it seems the Chat function doesn't provide an option to connect with a live agent. Could you please provide me with a link or email address where I can ask the questions I need answered?

[#14]

Also, it does not let me submit a support ticket either. 

[#15]

Hi Nicolas,

I'm sorry to learn you're having difficulties getting in contact with our support team for assistance. I can sense the urgency of your concern. Could you please share more details about your concern with us? We'll gladly look into that and assist you accordingly.

Looking forward to your response.

[#16]

I'm interested in understanding current processes more thoroughly, as I've found that the explanations available online often lack clarity.

1. If I received payment this year but wish to refund it to the client due to concerns about the legitimacy of the source, is it possible? Additionally, if I successfully do a refund and my income for the year becomes zero as a result, will this still be sent to the tax authorities?

2. I am currently in the process of relocating within Europe. I have previously provided a tax number, but now that I have a new one, will the DAC7 form be directed to my old country of residence or my new one?

3. Regarding UpWork payments, does the platform automatically forward DAC7 forms to the tax authorities, or am I responsible for doing so myself?

[#17]

If I have gotten payments and they were refunded and my balance is then once again 0€ income for this year. Is this then still sent to the tax authorities in EU?

[#18]

Have been trying to get answers and help for two days and all they do is look at them and merge them but do not answer. For such a big platform they should at least offer quality support for the users!

[#19]

Hi Nicolas,

Thanks for sharing more information. My name is Joanne, and I am responding on Arjay's behalf. Please know that I have requested the assistance of our team. One of our agents will assist you directly via a support ticket.

[#20]

Hello, I have a quick question. When should I receive the DAC7 form? I read many posts where it was written that it was until January 31st but I still didn't have anything. I'm from Poland. It's been a while and it's starting to worry me. Thank you for all your help

[#21]

Hi Mateusz,

You will be notified when your DAC7 form is available for viewing and downloading. When it is ready, you can access it under Settings > Tax forms. For more information, please check out this page. 

[#22]

Direct and straightforward question: is the DAC7 form also reporting the $0.99 withdrawal fees? Y/N?

Upwork does not currently issue any invoices against them, but as far as I understand, still an invoice is required by the Italian tax regime to calculate and pay the VAT on those expenses.

If Upwork includes the withdrawal fees in the DAC7 forms, they will have to include the details of each invoice as well as we have to do as individual freelancers?

[#23]

I am posting this here as I got no response on the relevant thread in the bulletin board.

Direct and straightforward question: is the DAC7 form also reporting the $0.99 withdrawal fees? Y/N?

Upwork does not currently issue any invoices against such fees, but as far as I understand, still an invoice is required by the Italian tax regime to calculate and pay the VAT on those expenses.

Grateful for informed help from Support.

[#24]

Hi Deborah,

Thanks for your question. To better assist you, we’ve escalated your community post to a support ticket. One of our agents will be in touch with you soon.

[#25]

This is not only about DAC7. All of us have to report expenses and i use wire transfer which costs 30 dollars each. And i get no document in return, upwork says "our bank charges this",  That is correct, yet that doesn't mean you can't reflect that to me with an actual invoice. I'll be happy to see this get fixed.

[#26]

Hello, So due to new laws i started reporting my income to my company.

And how to properly handle taxes, like if my client is tax payer it shows "Reverse Charge" on invoice and if client is not tax payer then why client is not paying additional tax to payment and if they do why it does not show up on invoice?

Right now as i understand if i earn 100 USD from tax payer eu company i receive 90 USD after upwork fee 

If client is not tax payer i earn 100 USD, after  upwork fee it becomes 90 USD, i still additionally need to pay 21% VAT? even if i didn't receive money with VAT? 

It makes ZERO sense and makes payments be taxed twice, once from my side and once from client side