How VAT works for freelancers in Albania

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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 Albania VAT, and why does Upwork collect it?

Value-added tax (VAT) is a tax on goods or services, including our services to you. Albania requires Upwork to collect and send it to the government of Albania unless you provide us with a valid VAT ID in your tax information.

We’re required to comply with the tax laws of countries where we do business to operate there.

What services for freelancers does Albania VAT apply to?

Examples of services where VAT applies:

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 in the future.

What's the Albania VAT rate?

It's 20% of the cost of the taxed service.

Example: On $100 USD in Freelancer Service Fees, you'll pay $20 in tax, for a total of $120.

You’ll see the estimated amount of tax on your invoices and in your transactions.

Am I required to provide an Albania VAT ID to work on Upwork?

No, but if you provide a valid Albania VAT ID to Upwork in your tax information, we will not have to collect this tax from you. We'll also display the VAT ID you provide on your invoices.

How do I enter my Albania VAT ID on Upwork?

Go to Manage finances > Tax information
Click the pencil icon to enter or edit your info
Select Save

Once you enter your info, we’ll check whether the VAT ID you provide is valid and give you a prompt response when you enter it. You can also see your VAT ID status on your Tax information page.

What's the Albania VAT ID format?

The Albania VAT ID number is a unique ID that you may request from your government by registering for VAT in Albania — not your tax ID. It has 10 alphanumeric characters that start and end with a letter, like this, for example: A23456789B.

To learn more, visit the Albania tax authority’s website.

Does Albania offer any VAT exemptions?

Albania does not offer any applicable exemptions from VAT on services that Upwork provides, but you can avoid VAT charges being collected by Upwork by providing a valid VAT ID.

What happens to Albania VAT if I change my location or information?

If you update your tax residence in your tax information, we'll automatically adjust what we collect to correspond with any taxes that apply in your new country.

You may have to revalidate your VAT ID or similar ID when you change locations, or if you make other changes to your information, such as changing your legal name.

Who does Upwork collect VAT from in Albania?

Albania’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Albania and have not provided us with a valid VAT ID.

Do I still collect VAT if I'm only residing in Albania temporarily?

Yes. As long as your tax residence is set to Albania, we’re required to collect them. If you move, update your tax information — we’ll adjust accordingly.

If I pay VAT before I enter a valid VAT ID, will you refund that money once I enter it?

No, we remit that money directly to the Albania government and cannot refund it. You may be able to claim a credit with your tax authority for what you paid. We recommend that you consult with your government’s tax authority or your tax advisor for more information.