Learn how Philippines VAT works on Upwork, including rates, VAT ID rules, exemptions, and when freelancers or clients will have VAT collected on Upwork.
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’s the Philippines 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 Philippines requires Upwork to collect VAT and send it to the government of the Philippines unless you provide a valid VAT ID in your tax information — and we’re required to comply with the tax laws of countries where we do business.
What does Philippine VAT apply to on Upwork for freelancers?
Examples of what VAT applies to:
- Membership fees
- Connects purchases
- Freelancer Service Fees
Since we charge tax when your government requires it, this tax may change or apply to additional services in the future.
What is the Philippines VAT rate?
It's 12% of the cost of the service being taxed.
Example: On $100 USD in Freelancer Service Fees, you'll pay $12 USD in tax, for a total of $112 USD.
You’ll see the estimated amount of tax when you check out, and the amount taxed on your invoices and in your transactions.
Am I required to provide my Philippine VAT ID?
No, but if you provide your tax identification number (TIN) and confirm that you've registered it for VAT in the Philippines, we will not have to collect this tax from you.
How do I enter my TIN and confirm it's registered for VAT in the Philippines?
- Go to Manage finances > Tax information
- Enter or edit your tax identification number (TIN)
- Once you provide your TIN, you’ll see a VAT card appear — confirm you're registered for VAT and that you'll provide registration upon request
- Select Save
Once you've entered this information:
- We’ll check whether the VAT ID you provide is valid, which usually happens right away
- 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's the VAT ID format for the Philippines?
Your VAT ID number is the same as your tax identification number (TIN), if you've registered it for VAT in the Philippines.
To learn more, visit the Philippines tax authority website.
Are there exemptions to the Philippines VAT?
The Philippines does not offer any applicable exemptions to your VAT on services Upwork provides, but you can avoid VAT charges being collected by Upwork by providing a valid VAT ID.
What happens to the Philippines VAT if I update 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 tax rates in your new country of residence, if any. You may have to enter a new VAT ID or similar ID, if applicable.
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 Philippines?
The Philippines VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in the Philippines.
Will you still collect VAT if I'm only residing in the Philippines temporarily?
Yes. As long as your tax residence is set to the Philippines, we’re required to collect them. If you move, update your tax information — we’ll adjust accordingly.