Learn why Upwork collects Nigeria VAT, which services it applies to, current rates, exemptions, and how location changes affect VAT.
In this article
- What's the Nigeria VAT and why does Upwork collect it?
- What services does VAT apply for clients on Upwork?
- What's the VAT rate in Nigeria?
- Do I have to provide my Nigeria VAT ID on Upwork?
- Are there any exemptions to Nigeria VAT?
- How do location changes impact Nigeria VAT?
- Who does Upwork collect VAT from in Nigeria?
- Do you still collect VAT if I'm only living in Nigeria temporarily?
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's the Nigeria VAT and why does Upwork collect it?
Value-added tax, or VAT, is a tax on goods or services, including our services to you, and Nigeria requires Upwork to collect it and send it to the government of Nigeria.
We’re required to comply with the tax laws of countries where we do business to operate there.
To learn more, visit the Nigeria tax authority website.
What services does VAT apply for clients on Upwork?
Examples of services that VAT applies to:
- Marketplace Fee
- Contract Initiation Fee
- Conversion Fee
- Recruiter Fee
- Featured Job purchases
Since we charge tax when your government requires it, this tax may change or apply to additional services at any time.
What's the VAT rate in Nigeria?
It's 7.5% of the cost of the service being taxed.
Example: On $100 USD in Marketplace fees, you'll pay $7.50 in tax, for a total of $107.50.
You’ll see the estimated amount of tax when you check out and the final charge on your invoices and transaction history.
Do I have to provide my Nigeria VAT ID on Upwork?
No, you're not required to enter your Nigeria VAT ID, and we're still required to collect VAT if you do. If you want to provide your VAT ID in your tax information, we'll display it on your invoices for you.
Are there any exemptions to Nigeria VAT?
Nigeria does not offer any applicable exemptions from VAT on services Upwork provides, and there's no exemption for providing your VAT ID.
How do location changes impact Nigeria VAT?
If you update your tax residence in your tax information, we'll automatically adjust your VAT based on your new country's rates, if any. Other countries may require a valid VAT ID or similar documentation.
Who does Upwork collect VAT from in Nigeria?
Nigeria’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Nigeria.
Do you still collect VAT if I'm only living in Nigeria temporarily?
Yes. As long as your tax residence is set to Nigeria, we’re required to collect them. If you move, update your tax information — we’ll adjust accordingly.