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

[MichaelJ]

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.

[zagach]

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_plaschka]

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

[zagach]

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

[denis_moshentsev]

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 🙂 

[zagach]

I agree with you.

[g_vasilevski]

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. 

[2a05aa63]

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

[mkrv]

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.

https://support.upwork.com/hc/en-us/articles/4410783619347
Oh! It looks like that page has moved.

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.

[mkrv]

the same issue described Yuri Z. here:
https://community.upwork.com/t5/Freelancers/VAT-Ukraine/m-p/990848#M623932

[weareeditmakers]

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.

[g_vasilevski]

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.

[weareeditmakers]

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?

[feed_my_eyes]

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

[weareeditmakers]

No, because I am not a citizen of Ukraine.

[2a05aa63]

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

[radmilashanovska]

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.

[2a05aa63]

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

[zagach]

Where did you get this number ?

[2a05aa63]

my.diia.gov.ua/my/taxes

[7d7cc1dd]

hey, did it work? 

[ifortuna]

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

[zagach]

So what is the fee for accounts without VAT number ?

[ifortuna]

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?

[zagach]

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