I hope someone in Italy can help me.
I would like to withdraw my funds from my Upwork account in the least expensive way. I realise that Upwork charges $0.99 per transfer if we opt for direct payment to local bank. I would like to know if there are further fees at the other end, i.e. fees made by the Italian local bank. Or is Paypal more convenient?
Also, Upwork is asking me to provide my W-8BEN tax information although I had already completed all this information. What do I have to do more than I haven't done?
I checked your account and can see that you have already filled-in your W-8BEN form. On your Tax Information page, you are also being requested to add your VAT information.
Upwork charges the country-specific Value Added Tax (VAT) to freelancers and agencies in the European Union (EU), unless you provide a valid VAT number. VAT will be assessed on services provided by us, not on services you provide your clients. You may read more about EU Value Added Tax (VAT) here.
Here's something that I directly took from that help article for your reference -
"Upwork is an online platform that brings freelancers and clients together. As our membership and activity has continued to grow in the EU, assessing VAT is an important element to continue providing services there. Based on Directive 2006/112/EC ("EU VAT Directive") Upwork's services qualify as electronically supplied services (ESS), which are subject to VAT at the place where the customer (i.e. the freelancer) is established or resides. Therefore, the services supplied by Upwork to freelancers who reside, have a permanent address, or are established in the European Union are subject to VAT there. Upwork is responsible for charging, collecting and remitting this VAT when providing these services to our EU customers.
Note: When freelancers have submitted a valid EU formatted VAT number to Upwork, Upwork won't be charging VAT. In these cases, the VAT may still be due but would be "reverse charged" to this VAT-registered freelancer. In other words, these customers of Upwork will have to report the VAT due on Upwork's service fee themselves."