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Is it possible recover your VAT fees once fixed your tax information?

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Active Member
Pablo I Member Since: Feb 12, 2016
1 of 7

Hello.

I am a Freelancer from the EU.  I have been working in a project during some time but I did not realize that I was paying a ~21% VAT for all upwork service fees.

 

When  I realized about this issue I went to fix it. I have just resolved it setting properly my tax information. However I see already notified VAT fees were not cancelled. I still have not withdrawn any money from the project. Is there any way to recover those fees? What should I do?

 

Thanks in advance.

Kind Regards.

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Community Guru
Petra R Member Since: Aug 3, 2011
2 of 7

Are you VAT registered in your country?

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Active Member
Pablo I Member Since: Feb 12, 2016
3 of 7

Yes, I am.

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Community Leader
Teri S Member Since: Oct 17, 2011
4 of 7

There is a way to claim back VAT you have paid on purchases from another EU company, but in Sweden you need to sign up to a specific service on the tax authority's website and fill in a form there to claim repayment of EU VAT paid.

 

However, there is a lower limit you can claim back. According to the Swedish tax office website, the least you can claim back is 50 Euro. That's probably universal across the EU, so unless you paid a lot of VAT before you noticed, it's probably not worth trying to claim it back through your local tax office.

 

I don't know if Upwork can refund you the VAT, but I wouldn't count on it. They don't seem to understand VAT at all and the support people probably can't access or adjust invoices.

 

You can include the VAT paid as a business expense, though, just like the rest of the service fee.

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Community Guru
Stephen B Member Since: Dec 4, 2012
5 of 7

if you are already VAT-registered in your country (i.e. have a VAT registration number and charge your clients VAT), then you give Upwork your VAT ID information, they check it with the European VIES database, and from that point the VAT will not be paid by Upwork, but notified amd marked as "VAT reversed".

 

Note that this is a verry short answer from a non-expert. There were some very long threads covering all aspects of the issue if you search the forum for them

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Active Member
Pablo I Member Since: Feb 12, 2016
6 of 7

Yes Stephen. But the problem is not the tax from now on. The problem is the VAT I already payed before setting up the VAT id into the upwork application.

 

 

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Active Member
Pablo I Member Since: Feb 12, 2016
7 of 7

Thanks Teri. 

I will try to find that service in Spain.

 

 

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