Witholding TAX Query

kristypepe · ‎09-10-2023

Dears,

I'm a Freelancer and I'm really am at loss with this VAT witholding on work done through Upwork. I've contacted support but they have not been very helpful.

So let me try to explain.

I live in Portugal and my VAT number is from Portugal.

Upwork is informs me that to get paid they will be deducting VAT from my earnings.

What they inform me is that they will remit the VAT payment they collect to the govenment throuhg the Mini One Stop Shop.

My questions are as follows:

What percentage will they deduct on my earnings?
Will they remit the VAT paid only or the income as well?
What inplications will this have on my yearly TAX declaration?
Will this imply having to register as an individual worker?

Any information you have on this subject will help greatly, as at the moment I dont know if it is worth me continuing working on Upwork.

Greatful for any feedback you may have on this subject.

Many Thanks

Cris

759e32fa · ‎09-10-2023

Hi Cristina,

I understand you were not satisfied with the customer support's response. You can mention this to them so they can try a different approach to explaining. Regarding tax obligations, we also highly suggest checking with a local tax advisor to get the most updated and accurate information

~ AJ

kristypepe · ‎09-12-2023

Hi,

kristypepe · ‎09-13-2023

Hi Annie.

Thanks for your reply.

However they have replied with a lot of articles that to me make no sense, I have contacted the PT Tax Office, and they tell me that I don't have to pay tax as im not in the US and my VAT number is Portuguese.

I don't think that up work doesn't have tax advisors, if they don't how do they know who to deduct it from and what to do?

This is a very sensitive matter it involves more money being paid to Upwork. Less for us...

I think we, deserve to have these matters explained thoroughly to know what to do...

I'm very disappointed and really don't think I will carry on working with upwork if this is not properly solved.

Cristina

759e32fa · ‎09-13-2023

Hi Cristina,

I understand that you're not satisfied with the response you got but if you need them to further explain, it's best if you update your support ticket. Please remember that we have freelancers and clients from all over the world and Upwork may not get the latest updates regarding the tax regulations in each country that we service, hence we advise you contact a local tax advisor for this matter.

~ AJ