The European Union VAT for freelancers

The European Union requires Upwork to collect value-added tax, or VAT, and remit the tax to your government if we do not have a valid VAT ID on file for you. VAT is a tax on goods or services, including our services to you, and remit means to send money for a payment.

Examples of services that VAT applies to in the European Union


  • Membership Fees, Connects purchases, and Freelancer Service Fees

When we charge tax, it’s because your government requires us to, which means this tax may change or apply to additional services in the future.

Tax rate


The tax rate varies by country, which means 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 Transaction History.

VAT ID


If you provide a valid VAT ID to Upwork, we will not have to collect this tax from you. You can enter or edit your VAT ID in your account’s Tax information.

We’ll check whether the VAT ID you provide is valid and provide you a prompt validation response when you enter it. You can also see your VAT ID status on your Tax Information page.

We’ll display the VAT ID you provide to us on your invoices. You will need to update your VAT ID to change what displays on your invoice.

EU VAT ID format

Your VAT ID number is different from your tax identification number. It is a unique ID that you may request from your government by registering for VAT in the EU. It varies by country and begins with your country’s code.

Country specific formats:

  • 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 alph-numberic 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.

Exemption


Some EU territories are exempt from VAT, and we will automatically assess zero VAT in those locations. Learn more on the official EU website.

Location and information changes


If you change locations and update your tax residence in your Tax information, we’ll automatically adjust your VAT to correspond with the rates in your new country of residence or stop collecting if there is no VAT, or a similar tax, in your new country.

However, you may have to revalidate your VAT ID when you change locations.

You may also have to revalidate your VAT ID 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

Who has to pay VAT?

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.

Why are you collecting VAT?

We’re required to comply with the tax laws of the countries where we operate to continue to do business in those countries. Your country requires that we collect VAT on Upwork services and remit them to your government unless we have a valid VAT ID on file for you.

Do you still collect VAT if I provide Upwork with a valid VAT ID?

No, if you provide a valid VAT ID, we do not have to collect and remit VAT tax for you. To enter your VAT ID, go to your account’s Tax information.

Do I have to provide a VAT ID to Upwork?

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.

What if I’m only residing in this country temporarily?

We are still required to collect VAT even if you are only residing in a country temporarily. If you move to another country, you can update your tax residence in your account’s Tax information. We will automatically adjust your VAT to correspond with the rates in your new country of residence or stop collecting if there is no VAT, or a similar tax, in your new country.

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 your 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.

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