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Michael's avatar
Michael J Community Member

Ukraine Tax – VAT Collection to Start in January (Update: on February 14): Feedback and Questions

Starting early next year, we will begin collecting Ukraine’s Value Added Tax (VAT) when talent and clients registered in Ukraine purchase Upwork services. Ukraine signed a new law on June 29, 2021 requiring Upwork to collect VAT for certain transactions.

 

Check out the announcement here and let us know your thoughts about these updates in the comments below.


Cheers,
Mike
117 REPLIES 117
Yuri's avatar
Yuri Z Community Member

Hello!

A new message appeared in my account:

"In compliance with the new VAT law in Ukraine, we must add VAT on Upwork fees unless you are VAT registered in Ukraine. Please click here to add your Ukraine VAT information."

The field to enter the code require 12 digits, but VAT code in Ukraine is only 10 digits, so Upwork doesn't accept it. How to manage this ?

Martina's avatar
Martina P Community Member

Have you tried with the country code? VAT numbers have a 2-digit country code. 

Yuri's avatar
Yuri Z Community Member

Yes, I tried "UA" but it doesn't accept letters, digits only.

Denis's avatar
Denis M Community Member

Same here!

 

CS agent in chat replied that this is a known issue and they are working on it right now. But to me, it looks like a major issue that needs to be resolved right away as it affects an entire country. Upwork, please remove this warning until the issue is fixed. I know a dozen of freelancers panicking because of it 🙂 

Yuri's avatar
Yuri Z Community Member

I agree with you.

Goran's avatar
Goran V Retired Team Member

Hi Yuri and Denis.

I'm sorry for the inconvenience this has caused you. I would like to confirm that our team is working on resolving this as soon as possible. Thank you for your patience. 

~ Goran
Upwork
Viacheslav's avatar
Viacheslav K Community Member

So, is it a bug or we do need to add our VAT when it's fixed?

Volodymyr's avatar
Volodymyr M Community Member

Few hours ago received notification:
In compliance with the new VAT law in Ukraine, we must add VAT on Upwork fees unless you are VAT registered in Ukraine. Please click here to add your Ukraine VAT information. For more details, read our FAQs.

I added my business address.
My personal РНОКПП has 10 digits instead of 8/12, and I unable to input it in form.

I pay increased rate, 5% of tax, to not pay VAT,
instead of 3%+VAT.

Please clarify, how we can handle it.

Volodymyr's avatar
Volodymyr M Community Member

Murat's avatar
Murat Y Community Member

Hello Upwork,
I live in Ukraine and my account is from Ukraine, but I am a Turkish citizen, I have a VAT number from Turkey, what should I do in this case?

I am waiting for your response, have a nice day.

Goran's avatar
Goran V Retired Team Member

Hi Murat,

 

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. To learn more about this, check out this Help Article. Thank you.

~ Goran
Upwork
Murat's avatar
Murat Y Community Member

I couldn't find any information about my condition.
I live in Ukraine and my account is from Ukraine, but I am a Turkish citizen, I have a VAT number from Turkey, what should I do for VAT registration?

Christine's avatar
Christine A Community Member

You pay taxes in the country where you live. If you live in the Ukraine, can't you get a VAT number for there?

Murat's avatar
Murat Y Community Member

No, because I am not a citizen of Ukraine.

Viacheslav's avatar
Viacheslav K Community Member

Even most ukrainians can't get the required VAT number and will pay this tax instead of Upwork

Radmila's avatar
Radmila S Community Member

Hello Upwork,

I have 10 numbers for a VAT identification number, but Upwork wants 12 numbers, can you help with this? 

I am waiting for your response, have a nice day.

Viacheslav's avatar
Viacheslav K Community Member

I tried to use the "Номер запису про взяття на облік" which is 12 digits. But yeah, quite confusing what is happening.

Yuri's avatar
Yuri Z Community Member

Where did you get this number ?

Viacheslav's avatar
Viacheslav K Community Member

my.diia.gov.ua/my/taxes

Anna's avatar
Anna L Community Member

hey, did it work? 

Ilya's avatar
Ilya F Community Member

**Edited for Community Guidelines** I don't have a VAT number.

Yuri's avatar
Yuri Z Community Member

So what is the fee for accounts without VAT number ?

Ilya's avatar
Ilya F Community Member

It looks like phrase "I have an individual VAT ID Number (Індивідуальний податковий номер)" has a wrong Ukrainian translation. Our tax number has 10 digits (not 12). The VAT ID Number is other creature :). So it looks like we will need to pay an additional fee, but how much?

Yuri's avatar
Yuri Z Community Member

They announced that from January 2022 anyone without 12-digit number (думаю лише ФОП такий має) will pay additional 20% from certain transactions. ☹️