VAT will be applied to the Upwork service fee

[lstembridge]

Hi there, i'm a new freelancer from the UK and I don't understand what this phrasing means.

Does this mean that in addition to the 20% service fee already charged, Upwork will also charge 20% VAT on the rest of my earnings or -

does it mean that upwork will charge 20% VAT of the service fee itself, (so 20% of the 20% charged) 

[JoanneP]

Hi Liberty,

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. VAT will be assessed on services provided by us, not on services you provide your clients. Please check this help article for more information.

[richard_wein]

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@Liberty S wrote:

Hi there, i'm a new freelancer from the UK and I don't understand what this phrasing means.

Does this mean that in addition to the 20% service fee already charged, Upwork will also charge 20% VAT on the rest of my earnings or -

does it mean that upwork will charge 20% VAT of the service fee itself, (so 20% of the 20% charged) 

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The latter. Upwork will deduct 24% of your earnings (on the first $500 earned from each client) if you're not VAT-registered.