Is it Upwork or the freelancer who deals with the VAT issues

[svuchev]

Hello guys,

Looking to start work as a freelancer on the platform, I consider different options to deal with my taxes. One suitable option is to start a Ltd company with VAT registration. I am situated in Bulgaria, EU.

In any case, I need to know if Upwork does all the VAT stuff between the freelancer and the client or I should care about any single client I work with. Is it the client or actually Upwork the one that pays me the money?

Best regards,

Stoyan

[BojanS · Accepted solution]

Hi Stoyan,

Please note that Upwork is applying and remitting VAT only on its service fee, membership fee and for purchasing additional Connects, in case a freelancer from the EU doesn't provide a valid VAT number. Upwork does not act as an employer or otherwise engage you,  you'll need to consult a local tax advisor regarding any charges that might apply to the services you provide to your clients.

Thank you!