Upwork collects Goods and Services Tax (GST) on purchases and fees from clients in Canada, as required by law.
Canada’s GST is a value-added tax, a type of sales tax. The Canadian government assesses GST of 5% on digital services, including those provided by Upwork. Provinces assess a similar tax — because of this, overall GST/HST rates vary by province (see “Taxes by Province” below).
The good news is you can control whether we collect the GST from you (PST in BC, SK, MB will apply to all users in those provinces without exception). If you have a GST/HST or QST number and have it on file with us, we are not required to collect the tax from you. You can add your Tax ID in your account’s Tax information.
If you don’t have a GST/HST number, we will assess the tax on the following, for example:
- Marketplace fees
- Contract Initiation Fees
- Any payment processing fees
- Membership fees
- Enterprise fees
- The cost of a Featured Job
- The Upwork Conversion fee (this is the fee you pay if you move a relationship off of Upwork)
Important:
Upwork will not collect any GST on the rates you agreed to pay your freelancer. For example, if you pay a freelancer $200 for a fixed-price contract, Upwork will not assess any GST on the $200. If your freelancer is required to collect GST/HST or QST from their clients, it is their responsibility to do so.
Taxes by Province
Your precise tax burden under the new law will vary depending on your location when Upwork provides services to you.
These taxes are levied both at the national and provincial level. Because each province’s laws are different, your tax will fall into one of these four categories:
- GST only
- Harmonized Sales Tax (HST) — Both national and provincial taxes are combined into a single tax which is then collected by the Canada Revenue Agency (CRA)
- GST plus provincial sales taxes (PST) — Each collected separately by the appropriate government body
- GST plus Quebec Sales Tax (QST) — Each collected separately by the appropriate government body
The chart below shows which combination of national and provincial taxes are collected on a per-province basis.
| Province | Type | Nat’l. rate | Prov. rate | Total Tax Rate |
|---|---|---|---|---|
| AB | GST | 5% | 0% | 5% |
| BC | GST/PST | 5% | 7% | 12% |
| MB | GST/PST | 5% | 7% | 12% |
| NB | HST | 5% | 10% | 15% |
| NL | HST | 5% | 10% | 15% |
| NT | GST | 5% | 0% | 5% |
| NS | HST | 5% | 10% | 15% |
| NU | GST | 5% | 0% | 5% |
| ON | HST | 5% | 8% | 13% |
| PE | HST | 5% | 10% | 15% |
| QC | GST/QST | 5% | 9.975% | 14.975% |
| SK | GST/PST | 5% | 6% | 11% |
| YT | GST | 5% | 0% | 5% |
Calculating GST
When collection starts, you will be assessed the appropriate GST on fees for services provided by Upwork.
We will use the regular 5% marketplace fee as an example. If a freelancer charges you $100, we will charge you 5%, $5 in this example. Under Canadian law, GST is applied to that $5 fee. Here’s how that breaks down by province:
- GST only — $0.25 in taxes will be collected from you for that transaction
- HST — Between $0.65 and $0.75 will be collected
- GST + PST — $0.25 for GST, between $0.30 and $0.50 for PST
- GST + QST — $0.25 for GST, $0.50 for QST
Entering your GST/HST or QST number
Upwork is required to collect Canadian GST and provincially equivalent taxes when our digital services are delivered to consumers. If you have a GST/HST and/or a QST number, you are not considered to be a consumer and therefore are not required to pay these taxes.
If your GST/HST or QST Number is not on file with us, we are required to collect these taxes from you. If you add your number at a later date, we will stop collecting these taxes at that time. GST/HST and QST validation can take several days — if entering your number after collection has already begun, we cannot stop collecting until verification is confirmed.
The validation process requires that the taxpayer name entered in the Company Details section of your profile (found under the My Info tab in your Settings) matches the name attached to your GST/HST or QST number.
To file your GST/HST or QST number with us, enter it in your account’s Tax information.
Frequently Asked Questions
Upwork currently charges GST to all Canada-based clients who do not have a GST/HST or QST number on file with us.
GST is the Goods and Services Tax, a type of value-added tax levied by the Canadian government on various goods and services, including the digital services that we offer.
HST is the Harmonized Sales Tax, a combination of GST and similar provincial-level taxes in Canada. It is a type of value-added tax levied on various goods and services, including the digital services that we offer. It’s currently levied in Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.
PST is Provincial Sales Tax, a type of value-added tax in Canada that is levied on various goods and services, including the digital services that we offer. It is levied, in addition to GST, in British Columbia, Saskatchewan, and Manitoba.
QST is Quebec Sales Tax, a type of value-added tax levied on various goods and services, including the digital services that we offer, in the Province of Quebec. It is levied in addition to GST.
A law was passed in Canada which requires non-resident businesses, such as Upwork, to collect GST and similar provincial-level taxes from individuals and businesses operating in Canada when they purchase taxable digital products or services. To comply with this law, we need to collect these taxes on the services we provide to freelancers, agencies, and clients in Canada and forward this tax to the Canadian tax authorities. We do not collect the tax on the payments you make to your freelancers on Upwork.
Upwork is required to collect GST from Canadian consumers and Canadian businesses who are not registered under the normal GST/HST regime. If you have a GST/HST and/or QST Number, you are not considered a consumer by the Canadian government. Add your valid GST/HST or QST Number in your account’s Tax information and we will not collect this tax from you
PST in British Columbia and Sasketchwan will apply to all transactions because there are currently no such exemptions in those provinces. Manitoba’s PST law went into effect in December 2021 and may not apply without exception.
We are required to assess GST on services provided by our company to anyone receiving such services in Canada. This applies even if you are a digital nomad and only temporarily residing in Canada.
Any time you move to a different country, even if temporarily, you should update your tax residence information in your account’s Tax information. For example, if you move to and work from South Africa, you may be entirely subject to South African laws. If you then move to Canada, you should update your Upwork address and Canadian GST will be assessed accordingly. Please consult a tax professional if you have questions as to whether and how the GST applies to you and your business.
No, you can’t — a business number does not exempt you from GST. To be exempt from GST, a GST/HST, or QST number is required. A Business Number is a completely separate business identifier and has no bearings on these taxes.
In Canada, a GST/HST number is a business identifier meant to help simplify tax dealings with the Canadian government. To learn more or to register for a GST/HST number, Learn more or register for a GST/HST number.
In Canada, a QST Number is a business identifier meant to help simplify dealings with the Quebec provincial government. To learn more or to register for a QST Number, Learn more or register for a QST Number.
We do not share any client information with the Canadian government. We only report the amount in taxes collected by Upwork.
Thanks for asking. You can add your GST/HST or QST Number at any time. If GST tax collection begins before you add your number, we will be required to collect these taxes but will stop once you add your valid number.
Please note that all value-added tax we collect is remitted directly to the government. We cannot refund taxes that we collected from you before you added your number.
