As of July 2021, we are required by Canadian law to collect Goods and Services Tax (GST) and provincial level taxes including Harmonized Sales Tax (HST), Quebec Sales Tax (QST), and Provincial Sales Tax (PST) (we’ll refer to all of these as Canadian Transaction Taxes) when freelancers, agencies, and clients in Canada purchase Upwork services. This applies to fees and subscriptions paid to Upwork and does not apply to services provided by freelancer to client.
We will begin collecting GST/HST and QST numbers beginning September 15, 2021
Upwork is required to collect GST from those who are not registered under the normal GST/HST regime in Canada. As a result, we will begin collecting GST/HST and QST numbers from users who are registered for Canadian Transaction Tax purposes. If you have a valid GST/HST number and a QST Number (for those in Quebec) — and have it on file with us, we don’t have to charge and collect the tax from you.
Please note, users in British Columbia (BC), Sasketchwan (SK), and Manitoba (MB - Dec 2021) will be subject to PST regardless of their GST registration status.
What is GST/HST
Canada’s GST/HST is a type of value-added tax. The Canadian government assesses 5% GST on digital services, including those provided by Upwork, while provincial rates like HST/PST and QST vary by province. A number of Canadian Provinces assess a similar tax in addition to GST/HST.
The amount of the taxes will vary depending on which province you reside or do business in. You will be subject to National and Provincial taxes based on your tax address on file. For more information on provincial tax ranges, see our Help article.
Take Action Now - Update your information before tax collection begins in November*
Submit your GST/HST number and QST number and update the legal name of the Taxpayer (as registered for the GST) as soon as possible to avoid being charged tax on Upwork fees.
1. Add your Tax ID
To file your GST/HST andQST number with us, click here.
2. Update your Taxpayer Information
Update the legal name of Taxpayer (as registered for the GST) as soon as possible to avoid being charged tax on Upwork fees.
3. Update your “Tax Residence” address
In order to ensure the proper tax rate is applied, please make sure the address you provided as your tax residence is accurate.
If you don’t have a GST/HST or QST number, we will be required to assess the tax on the following for freelancers, agencies, and clients:
Note: Clients will not be charged these taxes on payments made to Freelancers, and Freelancers will not be charged these taxes on earnings, just on payments made to Upwork.
Additionally, for clients - if you don’t have a GST/HST number, we will assess the tax on the following:
Upwork will not be collecting or remitting sales tax on the rates freelancers charge to clients. For example, if a client pays a freelancer $200 for a fixed-price contract, the client will not be assessed any GST on the $200.
Collection of Canada taxes will begin in November* 2021
We will provide you with an update here and via email again when the collection of Canada taxes begin. You can add your GST/HST and QST Number at any time beginning September 15, 2021. Your tax ID will need to be validated. Validation can take several days — if entering your number after collection has already begun, we cannot stop collecting until verification is confirmed.
All taxes collected by Upwork will be passed on to the Canadian and Provincial governments, as required by Canadian law. You may also want to consult a tax professional for more information on how this new law and its exceptions may affect you and your business.
We’ll also send you an email about this and you can view more information about national and provincial taxes and how GST/HST will be calculated when collections start in this Help article.
If you have any questions, please reach out to us.
*Updated on 10/1/21
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