Learn how Australian GST works on Upwork, how to add your ABN, and what to do if your information changes.
In this article
- What is Australia GST and why does Upwork collect it?
- What services does Australian GST apply to for clients?
- What's the Australian GST rate?
- How do I enter my ABN on Upwork?
- What is the ABN format?
- Don't have an ABN or aren't registered for GST?
- What happens if I change my ABN/GST number, location, or other information?
- What should I do if I receive an error message when entering my ABN or an email from Upwork that it isn't valid?
- Do I still have to pay GST if I'm only in Australia temporarily?
- If I pay Australian GST before I enter a valid ABN, will you refund that money once I do?
- I'm exempt from registering for GST because I’m under the $75,000 threshold. Are you still going to collect this tax?
Disclaimer:
This article is for general information only and should not be considered tax advice. It may not be updated in real time and may not reflect recent changes. We strongly encourage you to consult your country’s tax authority or your tax advisor with questions related to your specific situation.
What is Australia GST and why does Upwork collect it?
GST is a goods and services tax that applies to the services we provide to you on Upwork.
The Australian government requires us to collect this tax and send it to them unless you provide a valid ABN number and acknowledge that you're registered for GST, and we're required to follow the tax laws of countries where we do business.
What services does Australian GST apply to for freelancers?
Examples of services where GST applies are:
- Freelancer Service Fee
- Membership fee
- Connects purchases
We assess GST on fees for services provided by us, not on fees you charge your clients for your services.
Since we charge this tax because your government requires it, this tax may change or apply to other services in the future.
What's the Australian GST rate?
It's 10% of the cost of the service being taxed.
Example: On $100 USD in Freelancer Service Fees, you'll pay $10 in tax, for a total of $110.
You’ll see the estimated tax when you check out and the final amount on your invoices and in your transactions.
Am I required to enter my Australian Business Number on Upwork?
No, but if you provide a valid ABN in your tax information and confirm that you're registered for GST, we will not have to collect this tax from you. We'll also display your ABN number on your invoices.
How do I enter or update my ABN on Upwork?
- Go to Manage finances > Tax information
- Enter your 11-digit ABN
- Confirm you're registered for GST
What is the ABN format?
Your ABN is usually the same as your tax identification number and has 11 numeric digits, like this, for example: 12123456789.
We’ll check whether the ABN you provide is valid and registered for GST and give you a prompt response, usually within minutes. You can also see your VAT ID status on your Tax information page.
What if I don't have an ABN or am not registered for GST?
Please visit the Australian Taxation Office site and the Australian Business Register to learn more.
What happens if I change my ABN/GST number, location, or other information?
You'll have to revalidate your ABN/GST number if it changes, and you may have to do so if you make other changes to your information, such as changing your legal name.
If you update your tax residence in your tax information, we'll automatically adjust your GST or similar tax based on your new country's rates, if any. You may have to enter a new ID for the new location too.
What should I do if I receive an error message when entering my ABN or an email from Upwork that it isn't valid?
Please make sure you're entering the correct number. The ABN has 11 numeric digits, and it might look like this, for example: 12123456789.
If the number you entered is correct but we weren't able to validate it, you may want to talk with a tax advisor.
Do I still have to pay GST if I'm only in Australia temporarily?
Yes. As long as your tax residence is set to Australia, we’re required to collect this tax. If you move, update your tax information — we’ll adjust accordingly.
If I pay Australian GST before I enter a valid ABN, will you refund that money once I do?
No, we send collected GST directly to the government of Australia and cannot refund it. You may be able to claim a credit with your local tax authority for what you paid. We recommend that you consult with your local tax authority or tax advisor for more information.
I'm exempt from registering for GST because I’m under the $75,000 threshold. Are you still going to collect this tax?
We understand that you may not be required to register for GST for the purposes of your freelance business. However, to comply with Australian laws, Upwork has to collect GST on the services we provide.