Upwork collects a 7.7% VAT on services in Switzerland, including marketplace fees and recruiter fees, regardless of whether a VAT ID is provided. Supplying a VAT ID is optional and does not exempt users from the tax. VAT charges adjust automatically if tax residence is updated to another country.
Switzerland requires Upwork to collect value-added tax, or VAT, and remit the tax to the government of Switzerland. VAT is a tax on goods or services, including our services to you, and remit means to send money for a payment.
Examples of services that VAT applies to in Switzerland
- Marketplace fee, Contract Initiation Fee, conversion fee, and recruiter fee
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 Switzerland, the VAT rate is 7.7% of the cost of the service being taxed. For example, if you pay $100 USD in client marketplace fees, you will pay $7.70 in tax, for a total of $107.70.
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.
In Switzerland, your VAT ID starts with CHE, followed by 9 numbers, followed by one of three alphabet combinations, either MWST (German), TVA (French), or IVA (Italian). It should look like this, for example: CHE-999999999MWST.
To learn more, visit the Switzerland tax authority website.
Exemption
Switzerland does not offer any applicable exemptions to your VAT, and there is no exemption for providing your VAT ID.
Location changes
If you change locations 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.
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
Switzerland’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Switzerland.
No, you are not required to provide us with your VAT ID. Switzerland does not require us to have it.
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 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.