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Tax deduction



I just had my first payment released after 5-days and saw that Upwork deducted a tax from my earnings.

I have filled in W-8BEN form since I'm not a US-person/tax-payer and yet the tax was taken.
Could you please explain why did this happen?



Hi Aggie,


Please note that Upwork is applying and remitting VAT only on its service fee, membership fee and for purchasing additional Connects, in case a freelancer from the EU doesn't provide a valid VAT number. You'll need to consult a local tax advisor regarding any charges that might apply to the services you provide to your clients.


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. You have an option to add VAT number on your profile under Tax Information


Let us know if you have further questions.  


~ Nikola
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