Ukraine requires Upwork to collect value-added tax, or VAT, and remit the tax to your country’s government for users that do not themselves collect and remit VAT under a reverse-charge mechanism. We ask you to enter your valid VAT ID and to periodically check to ensure it remains valid and accurate because it is the clearest way for us to determine if we must collect these amounts on your behalf. 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 Ukraine


  • Marketplace fee, Contract Initiation Fee, featured job posts, conversion fee, recruiter fee, and Enterprise fees, for example

When we charge tax, it’s because your government requires us to, which means this tax may change or apply to additional services in the future.

Tax rate


In Ukraine, the VAT rate is 20% of the cost of the service being taxed. For example, if you pay $100 USD in client marketplace fees, you will pay $20 in tax, for a total of $120.

You’ll see the estimated amount of tax when you check out and the tax charged on your invoices and Transaction History.

VAT ID


If you provide a valid VAT ID to Upwork, we will not have to collect this tax from you. You can enter or edit your VAT ID in your account’s Settings > Tax Information.

 

We’ll check whether the VAT ID you provide is valid and provide you a prompt validation response when you enter it. You can also see your VAT ID status on your Tax Information page.

 

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.

Ukraine VAT ID format


Your VAT ID number is different from your ten-digit tax identification number. It is a unique ID that you may request from your government by registering for VAT in Ukraine. It has either eight or twelve digits and may look like this, for example: 12345678 or 123456789123.

To learn more, visit the tax authority website for Ukraine.

Exemptions


Ukraine does not offer any applicable exemptions from VAT, but you can avoid unintentionally paying VAT amounts twice by providing a valid VAT ID.

Location and information changes


If you change locations and update this information in your account by visiting Settings > Tax Information > Tax Residence, we will 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.

However, you may have to revalidate your VAT ID when you change locations.

You may also have to revalidate your VAT ID if you make other changes to your information, such as changing your legal name.

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 VAT?

Your country’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in your country and have not provided us with a valid VAT ID. 

Why are you collecting VAT?

We’re required to comply with the tax laws of the countries where we operate to continue to do business in those countries. Your country requires that we collect VAT on Upwork services and remit them to your government for users that do not themselves collect and remit VAT under a reverse-charge mechanism. We ask you to enter your valid VAT ID and to periodically check to ensure it remains valid and accurate because it is the clearest way for us to determine if we must collect these amounts on your behalf. 

Do you still collect 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 Settings > Tax Information.

Do I have to provide a VAT ID to Upwork?

If you do not provide a valid VAT ID, we will  collect VAT amounts on your behalf and remit it to your government. 

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 Settings > 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 information in your account’s Settings > Tax Information > Tax Residence. We will 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.

If I pay VAT before I enter a valid VAT ID, will you refund that money once I enter it?

No, we remit that money directly to your government and will not be able to 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.

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