Looking for information on Ukrainian freelancer taxes? Go here.

To comply with new Ukrainian tax laws, Upwork collects tax on certain transactions.

The good news is that we won’t collect these taxes from you if you provide us with your VAT ID Number. Add your VAT ID here. You can enter a 12-digit VAT ID or 8-digit business registration number to be considered exempt. Note: A 10-digit personal Tax ID is not a VAT ID.

If you don’t enter a valid number, we will be required to assess a 20% tax on the following:

  • Marketplace fees
  • Payment processing fees
  • Client membership fees, such as Upwork Plus account monthly fees
  • Premium job posts, including payments for Featured Jobs
  • Enterprise subscription fees
  • Enterprise billing fees
  • Enterprise service fees
  • Any Hire client fees
  • Talent Scout client fees

 

Important:

Upwork will not collect any tax on the rates you agree to pay your freelancer. For example, if you pay a freelancer $200 for a fixed-price contract, Upwork will not assess any VAT (value added tax) on the $200. If your freelancer is required to collect taxes from you it is their responsibility to do so.

 

Frequently Asked Questions

When did this tax collection begin?

Tax collection began in February 2022.

What if I don’t add my number before collection begins? Can I add it later?

You can add your VAT ID Number at any time. If VAT tax collection begins before you add your number and it is verified, we will be required to collect these taxes but will stop once your valid number is added and confirmed.

Please note that all VAT we collect is remitted directly to the government. We cannot refund taxes that we collected from you before your number was added and verified.

Why is Upwork collecting Ukrainian VAT?

There was a recent change in the law in Ukraine which requires VAT to be collected from certain individuals and businesses operating from Ukraine when they purchase electronic services from non-Ukrainian businesses (like Upwork). To comply with this law, we need to collect VAT on the services we provide to clients in Ukraine who do not have a VAT ID to exempt them from collection, and forward this tax to Ukrainian tax authorities.

How much is this tax?

We are required to collect 20% of payment processing fees, client membership fees, premium job posts, conversion fees, Enterprise subscription fees, Enterprise billing fees, Enterprise service fees, and Talent Scout client fees.

What if I’m only residing in Ukraine temporarily?

We are required to assess VAT on services provided by our company to anyone receiving such services in Ukraine. This applies even if you are a digital nomad and only temporarily residing in Ukraine.

Any time you move to a different country, even if temporarily, you should update your tax residency information on Upwork. For example, if you live in South Africa, you may be entirely subject to South African laws. If you then move to and work from Ukraine, you may be subject to this Ukranian tax law, and should update your address on Upwork. Once you do, Ukrainian VAT will be assessed accordingly. Please consult a tax professional if you have questions as to whether and how the VAT applies to you and your business.

Do you share my tax information with the government?

We do not share any individual account details. We only report the total amount in taxes collected by Upwork.

I'm exempt from paying VAT in Ukraine. Are you still going to charge me?

Upwork is required to collect VAT from consumers (both individuals and businesses) that reside in, have a permanent address in, or are established in Ukraine who are not registered under the normal VAT regime. If you have a VAT Number, you are not considered a consumer by the Ukrainian government. Add your valid VAT Number here and we will not collect this tax from you.

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