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Do I have to pay additional taxes in my country even though I pay VAT through Upwork?

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Alex R Member Since: Oct 22, 2018
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I live in Austria and I don't have a VAT number - I'm paying the VAT through Upwork. I don't actually fully understaned how this works. The VAT is being paid to the government of the country I live in, so Austria. If this is my only source of income, does this mean that my taxes are covered this way? Do I still have to pay taxes on that same income in the country itslef by myself even though I am paying VAT?

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Martina P Member Since: Jul 11, 2018
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@Alex R wrote:

I live in Austria and I don't have a VAT number - I'm paying the VAT through Upwork. I don't actually fully understaned how this works. The VAT is being paid to the government of the country I live in, so Austria. If this is my only source of income, does this mean that my taxes are covered this way? Do I still have to pay taxes on that same income in the country itslef by myself even though I am paying VAT?


 Dear Alex, 

VAT and income tax are 2 completely different taxes, and you have to pay both. 

The VAT is charged by upwork automatically on your fee. The income tax is based on your net income after deducting your relevant expenses. If you have several sources of income, either as an employee, rental income, or any other kind of business, you need to submit a Einkommensteuererklärung to your Finanzamt, if that net income exceeds, I believe, around 10K Euros per year currently. 

 

 

 

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Alex R Member Since: Oct 22, 2018
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Thank you, Martina! That's really helpful! The line at which you have to start paying is now 11K per year, by the way Smiley Happy

 

Excuse me for bothering you further, but you seem to know the specifics related to the country so I would just like to double-ckeck - if Upwork is my only income, but I do not exceed the 11K, am I still exempt from the tax, or is that only the case when it's a side income? Thank you!!

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Community Guru
Martina P Member Since: Jul 11, 2018
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@Alex R wrote:

Thank you, Martina! That's really helpful! The line at which you have to start paying is now 11K per year, by the way Smiley Happy

 

Excuse me for bothering you further, but you seem to know the specifics related to the country so I would just like to double-ckeck - if Upwork is my only income, but I do not exceed the 11K, am I still exempt from the tax, or is that only the case when it's a side income? Thank you!!


 Yes, you would be below the threshold for income tax, the nature of the income is not relevant, this is just about the total amount. If you, for example, have a summer job, or a part time job as an employee, or upwork income, in any given year, that would all count towards that total amount.

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