Upwork must collect 20% VAT on services for users in Turkey unless a valid VAT ID is provided. Fees subject to VAT include marketplace, initiation, conversion, and recruiter charges. Users can avoid VAT being collected by Upwork by submitting a valid VAT ID, but previously paid VAT is non-refundable. Location updates or name changes may require revalidation.
What is Turkey's 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 Turkey requires Upwork to collect it and send it to the government of the Turkey unless you provide a valid VAT ID.
We’re required to comply with the tax laws of countries where we do business to continue to operate there.
Examples of services that VAT applies to in Turkey
- Marketplace Fee
- Contract Initiation Fee
- Conversion fee
- Recruiter fee
Since we charge tax when your government requires us to, this tax may change or apply to additional services in the future.
What's the VAT tax rate for Turkey?
Turkey's VAT rate is 20% of the cost of the service being taxed. For example, if you pay $100 USD in client marketplace fees, you'll pay $20 in tax, for a total of $120.
You’ll see the estimated amount of tax when you check out and on your invoices and Transaction History.
Providing your Turkey VAT ID
- If you provide a valid VAT ID to Upwork in your account's Tax information, we will not have to collect this tax from you
- We’ll check whether the VAT ID you provide is in a valid format and provide you with a validation response — this usually happens right away
- The VAT ID you provide to us displays on your invoices, even if it's not validated. If you need to change what displays there, you'll need to update your VAT ID
Turkey VAT ID format
Your Turkey VAT ID number is a 10-number unique ID that you may request from your government by registering for VAT in Turkey—not the same as your tax ID. Like this, for example: 1234567890.
To learn more, visit the Turkey tax authority’s website.
Are there exemptions for Turkey VAT?
Turkey 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.
Changing your location or information
If you change locations and update your tax residence in your Tax information, we'll automatically adjust your taxes to correspond with the taxes in your new country of residence.
However, you may have to revalidate your VAT ID when you change locations, or if you make other changes to your information, such as changing your legal name.
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
Turkey’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Turkey and have not provided us with a valid VAT ID.
No, however, if you do not provide a valid VAT ID, we're required to charge you VAT and remit it to the Turkey government.
If you provide a valid VAT ID, we will not be required to collect the tax. To enter your VAT ID, go to your account’s Tax information.
Yes. We're still required to collect VAT even if you are only residing in Turkey temporarily. If you move to another country, you can update your tax residence in your Tax information. and we'll automatically adjust to whatever taxes are required in your new location, if any.
No, we remit that money directly to the Turkey government and will not be able to 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.