The Philippines requires Upwork to collect value-added tax, or VAT, and remit the tax to the government of The Philippines 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 Philippines
- Membership fees, Connects purchases, and freelancer service fees
When we charge tax, it’s because your government requires us to, so this tax may change or apply to additional services in the future.
Tax rate amount
In the Philippines, the VAT rate is 12% of the cost of the service being taxed. For example, if you pay $100 USD in freelancer service fees, you will pay $12 USD in tax, for a total of $112 USD.
You’ll see the estimated amount of tax when you check out and on your invoices and Transaction history.
VAT ID
If you have provided your tax identification number (TIN) and confirmed that you have registered your TIN for VAT in the Philippines, we will not have to collect this tax from you.
- You can enter or edit your VAT ID and confirm that it’s registered for VAT in your account’s Tax information
- We’ll check whether the VAT ID you provide is valid, which usually happens right away
- 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
- Your VAT ID number is the same as your tax identification number (TIN), if you have registered it for VAT in The Philippines. Once you provide your TIN, you’ll see a VAT card appear, where you can confirm you are registered for VAT and that you will provide registration upon request.
To learn more, visit the Philippines tax authority website.
Exemption
The Philippines does not offer any applicable exemptions to your VAT on services Upwork provides, but you can avoid VAT charges by providing a valid VAT ID.
Location changes
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 rates in your new country of residence or stop collecting if there is no VAT, or a similar tax, in your new country.
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 the Philippines VAT ?
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.
Why are you collecting the Philippines VAT?
We’re required to comply with the tax laws of the countries where we operate to continue to do business in those countries. The Philippines 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 I have to provide my VAT ID for the Philippines to Upwork?
No. However, if you do not provide a valid VAT ID, we are required to charge you VAT and remit it to the government of the Philippines.
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.
Do you still collect the Philippines 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.
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'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.