How VAT works for freelancers in the United Arab Emirates

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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 is UAE 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 the UAE requires Upwork to collect it and send it to the government of the UAE unless you provide a valid VAT ID in your tax information.

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

What does UAE VAT apply to for freelancers on Upwork?

Here are some example of what VAT applies to:

Membership fee
Connects purchases
Freelancer Service 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 UAE tax rate?

It's 5% of the cost of the service being taxed.

Example: If you pay $100 USD in Freelancer Service Fees, you will pay $5 in tax, for a total of $105.

You’ll see the estimated amount of tax when you check out (for purchases) and the final charge on your invoices and in your transactions.

Do I have to provide a UAE VAT ID to work on Upwork?

No, but 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 also display it on your invoices.

Where do I enter my UAE VAT ID on Upwork?

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

Once you do, 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 is the UAE VAT ID format?

It's a unique ID that you may request from your government by registering for VAT in the UAE — not your tax identification number. It has 15 numbers and it should look like this, for example, 999999999999999.

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

Are there exemptions on UAE VAT?

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

What happens with UAE VAT if I change my location or information?

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 taxes required in that country or jurisdiction, if any. You may have to enter a new VAT ID, or similar ID.

If you make other changes to your information, such as changing your legal name, you may have to revalidate your VAT ID.

Who does Upwork collect VAT from in the UAE?

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

Do you still collect VAT if I’m only residing in the UAE temporarily?

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

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

No, we send that money directly to the UAE 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.