VAT

[f44ade62]

Hi!
I was wondering why UpWork charges VAT even though Finnish law states that for earnings of under 10k€ one is not obligated to pay VAT? Or do I pay VAT to UpWork?

[759e32fa · Accepted solution]

Hi Ingrid,

Thank you for reaching out. 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. I hope this helps.

[lianakarafelyan]

Does it mean that VAT is not going to be deducted from my earnings, but only from fees?

[ArjayM]

Hi Linana,

As AJ mentioned above, VAT is assessed on digital services provided by Upwork, which means any applicable fees such as service fees, membership fees, and connect purchases will be deducted from your earnings. You can see this information by visiting your earnings reports.

[cheeley18]

Hi,

Then why is my account charged for VAT for the 2 most recent hourly contracts? That is not a service provided by UW (I did not purchase anything), but it's the service that I provided to my clients.

[eb8edca7]

Hi

I have just read your question and my opinion on that point is VAT (Value Added Tax) is charged by Upwork on the services they provide, and this VAT may vary depending on your location and the services you're using. Upwork is responsible for collecting and remitting VAT to the appropriate tax authorities, as required by law. You can be aware of how much percent of VAT you have to pay by this website..

However, whether you need to pay VAT on your earnings as a freelancer depends on various factors including your location, your tax status, and the specific tax laws applicable to your situation.