How VAT works for freelancers in the European Union

What’s the EU VAT and why does Upwork collect it?

Value-added tax, or VAT, is a tax on goods or services, including our services to you.

The EU requires Upwork to collect it and send it to your country's government unless you provide a valid VAT ID, and we’re required to comply with the tax laws of countries where we do business.

What does VAT apply to for clients in the EU?

Here are some examples:

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  • Membership fee

    Connects purchases

    Freelancer Service Fee

Since we charge tax when your government requires it, this tax may change or apply to additional services in the future.

What is the EU VAT rate?

The rate varies by country, so your tax percentage will depend on your country's VAT rate. Find the current VAT rate for your country here.

You’ll see the estimated amount of tax when you check out and the tax charged on your invoices and on your transactions.

Am I required to provide an EU VAT ID?

No, but if you provide a valid VAT ID to Upwork in your tax information, we will not have to collect this tax from you.

How do I provide my EU VAT ID?

1. Go to Manage finances > Tax information
2. Enter your VAT ID

Once you enter your info:

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  • We’ll check whether the VAT ID you provide is valid and give you a prompt validation response. You can also see your VAT ID status on your tax information
  • The VAT ID you provide to us displays on your invoices. To change what displays there, you'll need to update your VAT ID

What is the EU VAT ID format?

Your VAT ID number is a unique ID that you may request from your government by registering for VAT in the EU — not your tax ID number. It varies by country and begins with your country’s code.

Country specific formats:

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  • Austria (AU): Nine alpha-numeric characters, for example U12345678
  • Belgium (BE): Ten characters, starts with an 0 or 1, for example 0999999999 or 1999999999
  • Bulgaria (BG): Nine or ten characters, for example, 123456789 or 1234567890
  • Croatia (HR): Eleven numeric characters, for example, 12345678912
  • Cyprus (CY): Nine alpha-numeric characters, last character is a letter, for example, 12345678X
  • Czech Republic (CZ): Eight to ten numeric characters, for example, 12345678, or 123456789, or 1234567890
  • Denmark (DK): Eight numeric characters, for example, 12345678
  • Estonia (EE): Nine numeric characters, for example, 123456789
  • Finland (FI): Eight numeric characters, for example: 12345678
  • France (FR): Eleven alpha-numeric characters, for example, XX123456789
  • Germany (DE): Nine numeric characters, for example, 123456789
  • Greece (EL): Nine numeric characters, for example, 123456789
  • Hungary (HU): Eight numeric characters, for example, 12345678
  • Ireland (IE): Eight or nine alpha-numeric characters, often with a letter in the last one or two spaces, for example, 12345678X or 1234567XX
  • Italy (IT): Eleven numeric characters, for example, 12345678912
  • Latvia (LV): Eleven numeric characters, for example, 12345678912
  • Lithuania (LT): Nine or twelve numeric characters, for example, 123456789 or 123456789012
  • Luxembourg (LU): Eight numeric characters, for example, 12345678
  • Malta (MT): Eight numeric characters, for example, 12345678
  • Netherlands (NL): Twelve alpha-numeric characters, and the tenth character is always a B, for example, 123456789B11
  • Poland (PL): Ten numeric characters, for example, 1234567890
  • Portugal (PT): Nine numeric characters, for example, 123456789
  • Romania (RO): Between two and ten numeric characters, for example 12, or 12345, or 1234567890
  • Slovakia (SK): Ten numeric characters, for example, 1234567890
  • Slovenia (SL): Eight numeric characters, for example, 12345678
  • Spain (ES): Nine alpha-numeric characters, for example, 123456789
  • Sweden (SE): Twelve numeric characters, for example, 123456789012

To learn more, visit the European Commission website or the tax authority website for your country.

Are there any exemptions for EU VAT?

A few EU territories are exempt from VAT, and we'll automatically assess zero VAT in those locations. Learn more on the official EU website.

What happens to EU VAT if I update my location or other info?

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  • 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 tax rates in your new country of residence, 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 EU VAT apply to on Upwork?

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

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

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

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

No. Upwork can’t refund these taxes — we send them straight to the government. You may be able to claim input tax credits or deductions on your tax return.

Disclaimer:

This information is for general guidance only and shouldn’t be taken as tax advice. It may not be updated in real time and may not reflect recent changes. For help with your specific situation, it’s best to consult a qualified tax advisor or your local tax authority.