Learn how Ukraine VAT applies to Upwork fees, the 20% rate, VAT ID requirements, and how to update your tax information.
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.
In this article
- What is Ukraine VAT, and why does Upwork collect it?
- What does Ukraine VAT apply to on Upwork for freelancers?
- What is Ukraine's VAT rate?
- Am I required to provide my Ukraine VAT ID to work on Upwork?
- How do I enter or edit my Ukraine VAT ID?
- What is Ukraine's VAT ID format?
- Are there any exemptions to Ukraine VAT?
- Who does Upwork collect VAT from in Ukraine?
- What if I change my location or personal information?
- What if I’m only residing in Ukraine temporarily?
- If I pay VAT before I enter a valid Ukraine VAT ID, will you refund that money once I enter it?
What is Ukraine VAT, and why does Upwork collect it?
Value-added tax, or VAT, is a tax on goods or services, including our services to you.
Ukraine requires Upwork to collect and remit VAT to your country’s government for users who don't collect and remit VAT themselves under a reverse-charge mechanism, and we're required to follow the tax laws of the countries where we operate.
What does Ukraine VAT apply to on Upwork for freelancers?
Examples of what VAT applies to:
- Membership fees
- Connects purchases
- Freelancer Service Fees
Since we charge tax when your government requires it, this tax may change or apply to additional services in the future.
What is Ukraine's VAT rate?
It's 20% of the cost of the service being taxed.
Example: On $100 USD in Freelancer Service Fees, you'll pay $20 in tax, for a total of $120.
You’ll see the estimated amount of tax when you check out and the actual tax charged on your invoices and your transactions.
Am I required to provide my Ukraine VAT ID to work on 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 on your invoices.
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.
How do I enter or edit my Ukraine VAT ID?
- Go to Manage finances > Tax information
- Click on the pencil icon to enter or edit your info
- Select Save
Once you've entered it, we’ll check whether the VAT ID you provide is valid and provide you a prompt validation response. You can also see your VAT ID status on your tax information page.
What is Ukraine's VAT ID format?
Your VAT ID is a unique ID that you may request from your government by registering for VAT in Ukraine — not your ten-digit tax ID. You VAT ID 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.
Are there any exemptions to Ukraine VAT?
Ukraine does not offer any applicable exemptions from VAT on services Upwork provides, but you can avoid unintentionally paying VAT amounts twice by providing a valid VAT ID.
Who does Upwork collect VAT from in Ukraine?
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.
What if I change my location or personal information?
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 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.
What if I’m only residing in Ukraine temporarily?
Yes. As long as your tax residence is set to Ukraine, we’re required to collect them. If you move, update your tax information — we’ll adjust accordingly.
If I pay VAT before I enter a valid Ukraine VAT ID, will you refund that money once I enter it?
No, we send that money directly to your 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.