Doubts about VAT

Andrea G · ‎10-31-2022

Doubts about VAT
Hello, good morning

I would like to hire a person on Upwork, but I can't find any information about VAT, at the moment I am not freelance, but I have plans to be. What I would like to know is what would be the impact of hiring someone, me from Spain, for punctual jobs in Upwork. Since sometimes time does not give for everything. My question is

How would it affect me to make sporadic hires at tax level if I do not declare the VAT of such transactions, since I have no way to declare it currently and the amount would not exceed 200 euros per quarter?

Thank you, I am in a very difficult situation, a clear answer would help me a lot.

Joanne P · ‎11-23-2022

Hi Marc,

VAT is applied to the Upwork service fee, premium Upwork memberships, and purchases of Connects. The tax is collected by Upwork and remitted to the respective EU government. We remit the VAT payment we collect to your government through the Mini One Stop Shop (MOSS) mechanism instituted by the EU. VAT is shown on your invoices, which can be found under Reports › Transaction History. Upwork doesn't currently charge VAT on client payments to freelancers or on payment processing fees.

The tax rate varies by country, which means your tax percentage will depend on your country's VAT rate. You can find the current VAT rate for your country here.

Upwork doesn't require anyone to have a VAT number but we will charge VAT on the services above to freelancers and agencies within the EU unless they provide a valid VAT number.

I'd also like to share the following to help you get started on Upwork. Here are a few Upwork Academy courses and helpful resources:

Additionally, feel free to sign up for upcoming events and webinars to learn more about how you can boost your success on Upwork.

~ Joanne