Ukraine Indirect Taxes on Freelancers

Looking for information on Ukrainian client taxes? Go here.

To comply with new Ukrainian tax laws, we will collect tax on certain transactions beginning early 2022.

The good news is that we won’t collect these taxes from you if you provide us with your VAT ID Number. Add your 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.
10-digit Ukraine's VAT

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

  • Freelancer service fees (not your earnings). For example, let’s say you earn $100 on a project and pay 20% ($20) for freelancer fees. The VAT will be applied to that $20, meaning you’ll pay $4 in VAT.
  • Connects purchases.
  • Membership fees. This includes our Freelancer Plus plan.

 

Important:

Upwork only collects these taxes on purchases and fees you make with us. We do not collect taxes from your clients on your behalf. If you are required to collect taxes from your clients, that is your responsibility.

 

Frequently Asked Questions

When will Upwork start collecting VAT in Ukraine?

Tax collection will begin in early 2022. You will be notified first.

Why is Upwork collecting Ukrainian VAT?

We are collecting this tax to comply with local tax laws in Ukraine. A change in the law has required us to begin collecting these taxes unless you provide a VAT ID Number.

How much is this tax?

We are required to collect 20% of freelancer service fees, Connects purchases, and membership fees.

What if I’m only residing in Ukraine temporarily?

We are required to assess taxes 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 move to and work from South Africa, you may be subject to South African laws. If you then move to Ukraine, Ukrainian taxes will be assessed accordingly once you update your address. Please consult a tax professional if you have questions on how the taxes apply to you.

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.

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