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Australian GST as a Client

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Active Member
Felisse D Member Since: Mar 21, 2019
1 of 15

Hi,

 

I've been reading a lot about GST for freelancers but nothing on how it works for clients.

 

Would clients be able to claim GST credits on their Upwork payments to freelancers? Would this only apply to freelancers in Australia or also overseas?

 

Thank you,

Felisse

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Nigel M Member Since: Jul 24, 2019
2 of 15

I would love to hear more about this as well.

 

At it's core, I'm suspecting that there's no GST (as we're not paying the freelancer directly - we're paying Upwork for a service and they're in turn paying a freelancer to deliver that service).

 

However, I suspect with all these GST changes for International companies happening recently - that this might end up changing.

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Karen K Member Since: May 18, 2020
3 of 15

I can't find any information about this eiher and the "help" option leads me back here.

 

Has there been any information provided by Upwork?

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Nigel M Member Since: Jul 24, 2019
4 of 15
Not that I've seen unfortunately
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Moderator
Vladimir G Moderator Member Since: Oct 31, 2014
5 of 15

Hi Nigel and Karen,

 

Please note that GST is assessed on fees for services Upwork provides to freelancers and agencies in case they don't provide a valid ABN and acknowledge that they're registered for GST.

 

Please check this Help article and announcement thread for more information. Please consult your tax advisor if you have more questions about specific Goods and Services Tax (GST) responsibilities. You can also visit the Australian Taxation Office site.

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Karen K Member Since: May 18, 2020
6 of 15

Thanks Vladimir, I have read those articles but it doesn't answer the question which is if Upwork charge us as clients GST in your charges?

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Moderator
Vladimir G Moderator Member Since: Oct 31, 2014
7 of 15

Hi Karen and Nigel,

 

To clarify, Upwork doesn't charge GST to clients.

 

 

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Nigel M Member Since: Jul 24, 2019
8 of 15
Vladimir - then I suggest your financial team investigates the Australian GST law - as there's an almost 100% chance that Upwork should be charging GST you Australian clients.

https://www.ato.gov.au/Business/International-tax-for-business/GST-on-imported-services-and-digital-...
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Nigel M Member Since: Jul 24, 2019
9 of 15

Thanks Vladimir, however as Karen says - those linked articles don't answer / address our situation.

We're not freelancers - we're clients paying Upwork for you to then hire freelancers to deliver the work. 

 

Can you please point to something that clarifies Upwork's GST stance on this?

If you were to follow the letter of the law as to my understanding of it, Upwork would need to include GST on every single transaction that they do (even if the freelancer doing the work isn't registered for GST) because Upwork is the entity that we are paying for the work to be done (we aren't paying the client directly - Upwork is operating as an agency where we pay you - you then keep your commissions / profits and then pay the contractor).

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Katt S Member Since: Sep 3, 2020
10 of 15

Yeah, our freelancers are including GST but we are not sure how to claim as a client/company as the transactions don't include GST. Something seems broken here legally?

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