Learn how South Africa’s 15% VAT applies to Upwork services, who must pay it, and what happens if you change locations or add your VAT ID
In this article
- What is South Africa VAT, and why does Upwork collect it?
- What does South Africa VAT apply to for freelancers on Upwork?
- What's the South Africa VAT rate?
- Am I required to provide a South Africa VAT ID to Upwork?
- Are there exemptions to South Africa VAT?
- What if I change locations?
- Who does Upwork collect VAT from in South Africa?
- Do you still collect VAT if I’m only residing in South Africa 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 is South Africa VAT, and why does Upwork collect it?
Value-added tax, or VAT, is a tax on goods or services, including our services to you.
South Africa requires Upwork to collect VAT and send it to the government of South Africa, and we’re required to comply with the tax laws of countries where we do business.
To learn more, visit the South Africa tax authority website.
What does South Africa VAT apply to for freelancers on Upwork?
Here's some examples of what VAT applies to on Upwork:
- Freelancer Service Fee
- Membership fee
- Connects 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 South Africa VAT rate?
It's 15% of the cost of the service being taxed.
Example: If you pay $100 USD in Freelancer Service Fees, you will pay $15 in tax, for a total of $115.
You’ll see the estimated amount of tax when you check out and the final charge on your invoices and in your transactions.
Am I required to provide a South Africa VAT ID to Upwork?
No, and providing it does not exempt you from paying the tax.
If you want your VAT ID to display on your invoices, you can enter it your tax information. It's a unique identifying number that you may request from your government by registering for VAT in South Africa — a 10-digit number that starts with a 4 and looks like this, for example: 4999999999.
Are there exemptions to South Africa VAT?
South Africa does not offer any applicable exemptions to VAT for services provided on Upwork, and there is no exemption for providing your VAT ID.
What if I change locations?
If you move and update your tax residence in your tax information, we'll automatically adjust your VAT to correspond with the rates in your new country of residence or stop collecting if there is no VAT, or a similar tax, in your new country.
Who does Upwork collect VAT from in South Africa?
South Africa’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in South Africa.
Do you still collect VAT if I'm only residing in South Africa temporarily?
Yes. As long as your tax residence is set to South Africa, we’re required to collect this tax. If you move, update your tax information — we’ll adjust accordingly.