South Africa requires Upwork to collect value-added tax, or VAT, and remit the tax to the government of South Africa. VAT is a tax on goods or services, including our services to you, and remit means to send money for a payment.
Example of services that VAT applies to in South Africa
- Membership fees, Connects purchases, and freelancer service fees
When we charge tax, it’s because your government requires us to, which means this tax may change or apply to additional services in the future.
Tax rate amount
In South Africa, the VAT rate is 15% of the cost of the service being taxed. For 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 on your invoices and Transaction History.
VAT ID
You are not required to provide a VAT ID, and providing a valid VAT ID does not exempt you from paying the tax. However, if you choose to provide your VAT ID, we will display it on your invoices. You can enter it in your account’s Tax Information.
Your VAT ID is a unique identifying number that you may request from your government by registering for VAT in South Africa. It is a 10-digit number that starts with a 4 and looks like this, for example: 4999999999.
To learn more, visit the South Africa tax authority website.
Exemption
South Africa does not offer any applicable exemptions to VAT, and there is no exemption for providing your VAT ID.
Location changes
If you change locations and update your tax residence in your account's 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.
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.
Frequently Asked Questions
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.
We’re required to comply with the tax laws of the countries where we operate to continue to do business in those countries. South Africa requires that we collect VAT on Upwork services and remit them to your government.
No, you are not required to provide us with your VAT ID. South Africa does not require us to have it.
However, if you choose to provide your VAT ID, we will display it on your invoices and Transaction history. If you would like to enter it so that it will be displayed, you may do so by entering it in your account’s Tax Information.
Yes, we will still collect VAT. South Africa does not exempt you from the tax if you provide your VAT ID.
We are still required to collect VAT even if you are only residing in a country temporarily. If you move to another country, you can update your tax residence in your account's 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.
