Learn how Saudi Arabia VAT works on Upwork, including rates, VAT ID requirements, exemptions, and how to manage location or info changes.
In this article
- What’s the Saudi Arabia VAT and why does Upwork collect it?
- What services does Saudi Arabia VAT apply to for clients on Upwork?
- What is the Saudi Arabia VAT rate?
- Am I required to provide my Saudi Arabia VAT ID to Upwork?
- How do I enter my Saudi Arabia VAT on Upwork?
- What is the Saudi Arabia VAT ID format?
- Are there any exemptions to the Saudi Arabia VAT?
- What happens to VAT if I change my location or personal info?
- Who does Upwork collect VAT from in Saudi Arabia?
- Do you still collect VAT if I’m only residing in Saudi Arabia temporarily?
- If I pay Saudi Arabia VAT before entering a valid VAT ID, will you refund that money once I do?
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 Saudi Arabia VAT and why does Upwork collect it?
Value-added tax, or VAT, is a tax on goods or services, including our services to you.
Saudi Arabia requires Upwork to collect VAT and send it to the government of Saudi Arabia 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 services does Saudi Arabia VAT apply to for clients on Upwork?
Examples of what VAT applies to:
- Marketplace fee
- Recruiter fee
- Conversion fee
- Contract Initiation fee
- Featured Job purchases
Since we collect tax when your government requires it, this tax may change or apply to additional services in the future.
What is the Saudi Arabia VAT rate?
It's 15% of the cost of the service being taxed.
Example: On $100 USD in Marketplace fees, you'll pay $15 in tax, for a total of $115.
You’ll see the estimated amount of tax when you check out (for purchases) and the final charge on your invoices and in your transaction history.
Am I required to provide my Saudi Arabia VAT ID to Upwork?
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. We’ll also display the VAT ID you provide to us on your invoices.
How do I enter my Saudi Arabia VAT on Upwork?
- Go to Account settings (desktop) or Settings (mobile) > Tax information
- Click the pencil icon to enter or edit info
- Select Save
We’ll check whether the VAT ID you provide is in a valid format and provide you with a validation response — this usually happens right away.
What is the Saudi Arabia VAT ID format?
Your Saudi Arabia VAT ID is a unique ID that you can request from your government by registering for VAT in Saudi Arabia — not your tax ID Number. It has 15 numeric characters, like this, for example: 345678901234503.
To learn more, visit the Saudi Arabia tax authority’s website.
Are there any exemptions to the Saudi Arabia VAT?
Saudi Arabia does not offer any applicable exemptions to VAT on services Upwork provides, but you can avoid having VAT collected by Upwork by providing a valid VAT ID.
What happens to VAT if I change my location or personal info?
If you change locations and update your tax residence in your 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 Saudi Arabia?
Saudi Arabia’s VAT collection on Upwork applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Saudi Arabia and have not provided us with a valid VAT ID.
Do you still collect VAT if I’m only residing in Saudi Arabia temporarily?
Yes. As long as your tax residence is set to Saudi Arabia, we’re required to collect them. If you move, update your tax information — we’ll adjust accordingly.
If I pay Saudi Arabia VAT before entering a valid VAT ID, will you refund that money once I do?
No, we remit that money directly to the Saudi Arabia government and cannot 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.