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lawson-harry
Member

UK Freelancers: I'm registered as self employed, but clients EU based, do you pay EU VAT?

Hi there,

 

Not looking for tax advice, but maybe I can be pointed in the right direction...

 

Have been on Upwork for over a year now, I always assumed I would just report earnings via self-assessment.

 

But recently I read that if you provide services to EU customers, likely have to pay EU VAT?

 

My question is:

 

Because we do it via Upwork. Does it simplify this and all you guys do is report your earnings via self-assessment ignoring where the client is based?

1 REPLY 1
egaruth
Moderator
Moderator

Hi Harry,

 

Upwork charges VAT to freelancers and agencies in certain countries unless specific exemption requirements are met. Upwork is required to collect this tax and pay it to the appropriate government agency.

 

VAT is assessed on digital services provided by Upwork (i.e. service fees, membership fees, and connect purchases), not on services freelancers and agencies provide their clients. VAT rates are calculated according to the local rate of the freelancer’s country of residence.

 

Please see country-specific tabs to further understand how VAT applies to you. We encourage you to consult your tax advisor with questions that relate to your specific situation. You can find more information in this help article

 

~ Nikola
Upwork
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