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Enter a VAT when working with an Upwork Enterprise client

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Active Member
Hristo P Member Since: Dec 26, 2019
1 of 7

Hello dear team, 

 

I will be working with an Upwork Enterprise client for this contract. As far as I understand VAT will be applied to services provided by Upwork. Does this mean I can register without having a VAT?

 

Thank you!

 

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Moderator
Goran V Moderator Member Since: Mar 24, 2017
2 of 7

Hi Hristo,

 

Upwork charges the country-specific Value Added Tax (VAT) to freelancers and agencies in the European Union (EU) unless you provide a valid VAT number. To learn more about VAT check out this Help Article. Thank you.


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Hristo P Member Since: Dec 26, 2019
3 of 7

Hi Goran, 

 

but what is the VAT be applied to? There is no service fee. 

 

Thanks

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Moderator
Goran V Moderator Member Since: Mar 24, 2017
4 of 7

Hi Hristo,

 

Just to clarify, Upwork is required to assess VAT on services provided by our company to anyone residing in the EU. I understand that you won't have a service fee on your contract, but when working on other contracts (with service fee) you will be charged for VAT as well.
Please refer to the help article I shared for more details about this. Thank you.


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


Hristo P wrote:

I will be working with an Upwork Enterprise client for this contract. As far as I understand VAT will be applied to services provided by Upwork but in my case there is not going to be a fee from Upwork. T. 

 


Why isn't there going to be a service fee? I have worked with multiple Enterprise clients, and if you are hired as a freelancer, there is a service fee,(10% straight away rather than 20% because it's an Enterprise client)  and if you are hired as an employee, VAT isn't relevant anyway.

 

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Hristo P Member Since: Dec 26, 2019
6 of 7

Hi guys,

 

I am registering a VAT number for myself in Bulgaria and I am being asked by our tax department about Upwork's VAT number and location in Europe. Can you provide me this info?

 

Thank you

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

Hristo P wrote:

I am registering a VAT number for myself in Bulgaria and I am being asked by our tax department about Upwork's VAT number and location in Europe. Can you provide me this info?


I don't actually think you need a VAT number at this stage and if you did, you would not need Upwork's VAT ID because you do not work for Upwork.

Upwork is not in Europe, but in California, USA.