IMPORTANT
The EU’s tax directive, DAC7, which applied as of January 1, 2023, imposes tax reporting obligations on online marketplaces. For tax year 2023, we created a Form DAC7 for all EU-based freelancers and agencies who both signed up on Upwork in 2023 and earned any money. (Those who signed up prior to 2023 were not impacted by the tax directive yet.)
For tax year 2024, we will create a Form DAC7 for all freelancers and agencies who are EU-based and receive payments in 2024, regardless of when you signed up on Upwork.
We are required to report this form to your tax authority and must report on all payments made to you, regardless of the number of transactions or amount.
Like any business, we’re required to comply with tax laws. When you earn funds on Upwork, you’re also required to follow the tax regulations that apply to you. While we can’t provide you with legal or tax advice, we can clarify which documents you will receive from us.
If you’re a freelancer who resides in the EU, and you earn money working through Upwork, you need to report this income on your tax return even if you do not get any forms from us. We will send a Form DAC7 to all residents in any of the EU member states if you signed up in 2023 and had any payment from your clients on Upwork in the calendar year.
Note:
For tax year 2024, we will send you a Form DAC7 if you receive payments in 2024, regardless of when you signed up on Upwork.
Form DAC7
The DAC7 form is used to report payments made to persons who are tax residents of any member country within the EU. This form may also help you document your yearly income as you prepare your taxes or complete other business.
We’ll email you when your DAC7 is ready, with a link to the Tax Information page. You can also find it in your account's Tax forms.
A Form DAC7 will contain all of your Upwork transactions, which we report by quarter, including:
- Total of net earnings (USD): Net earnings are calculated by deducting any refunds, taxes, fees and commissions paid during the period from your total gross earnings
- Total fees and commissions (USD): Fees and commissions include all the payments you make to Upwork, such as Connects purchases, payment transfers, and freelancer service fees, for example
- Total taxes (USD): Taxes include your country's income taxes, withholding taxes, and any other taxes that Upwork must collect in order to comply with local tax laws
- Total number of transactions: Number of transactions includes all earnings, and indicates the total amount of transactions in each quarter
Note:
All figures in tax forms you receive from us will be listed in USD
Qualifying freelancers
Freelancers and businesses residing in the EU must complete the appropriate form (Form W-8BEN, W-8BEN-E or W-9) and update your tax residence in order for us to determine whether you live in the EU. We cannot send you a Form DAC7 without a tax residence in the EU.
You also need to verify your taxpayer identification number (TIN). We encourage you to add a valid TIN to help ensure complete and accurate reporting.
Frequently Asked Questions
DAC7, or the EU Directive on Administrative Cooperation, is a significant European law that focuses on clarity around money people make on digital platforms, like selling things online. This law makes it simpler for local tax authorities to collect the right amount of taxes.
For people earning on platforms like Upwork — freelancers or agencies in the EU — DAC7 requires you to share how much money they make on the platform. It's part of new rules to make sure everyone follows the same reporting requirements for taxes.
If you aren't a resident of the EU but your address is located in the EU, update your Tax information and change your location.
If you are a freelancer or business with financial activity in 2023, who signed up with Upwork in 2023, and you are located in an EU country, you are eligible to receive the Form DAC7 for 2023.
For tax year 2024, any freelancer or business with earnings on Upwork will be eligible to receive a Form DAC7 from us regardless of when you signed up. That means that you will receive a DAC7 from us in 2025 if you have earnings in 2024.
For services, which includes the work you do on Upwork, there is no minimum and all transactions have to be reported. The minimum condition for DAC7 only applies to the sale of goods.
You will be notified when your DAC7 form is available for viewing and downloading. When it is ready, you can access it in your account's Tax forms.
You’ll need to make sure that your tax address is up to date and that you have completed a W-8BEN, W-8BEN-E or W-9 with a valid Tax Identification Number (TIN). You can make updates in your account's Tax information.
DAC7 impacts residents of EU member states who earn revenue on Upwork. If your primary residence is not in an EU member state, DAC7 does not apply to you. If you move your primary residence into, or out of, an EU member state, you must update your account's Tax information.
You can find your Form DAC7 in your account's Tax forms.
Ensuring we have the correct tax residence address and the Tax Identification Number (TIN) on file allows us to correctly file your DAC7 form as required by the EU tax authorities.
We cannot provide individual tax guidance. Please consult your country’s tax authority or your tax advisor with questions related to your specific situation.
ou may be able to find information about your country’s TIN here. If you have questions about your number, you will need to consult a tax advisor in your country or contact your local tax authority.
We will report the tax information you provide on the DAC7 and your earnings to the relevant EU tax authorities.
