Upwork collects GST in New Zealand due to local tax regulations. GST applies to users without a valid GST ID on file and may affect fees and purchases. Users can avoid charges by adding and verifying a properly formatted GST ID in their tax settings.
Why does Upwork collect GST in New Zealand?
Upwork Global Inc. has registered for GST in New Zealand. As part of that registration, we’re required to:
- Collect GST on applicable transactions
- Collect GST IDs from users who are registered businesses
- Display GST details on invoices
This helps us comply with New Zealand tax regulations and avoid penalties.
Who does Upwork collect GST from?
You may see GST added to your transactions if:
- Your tax residence or profile address is in New Zealand
- You have not added a valid New Zealand GST ID to your Tax information
GST may apply to things like:
- Connects purchases (if you are a freelancer or agency)
- Upwork service fees (both client and freelancer fees)
- Other applicable platform transactions, such as membership plans
How do I add my New Zealand GST ID?
- Go to Tax information
- Find the section called Goods and Services Tax (GST)
- Select “I’m registered for GST in New Zealand and my TIN is valid for GST purposes”
- Enter your GST ID
- Check the confirmation box to confirm:
- You’re registered for GST in New Zealand
- Your TIN is valid for GST
- Save your changes
What is the correct GST ID format in New Zealand?
Your New Zealand GST ID must:
- Be nine digits
- Follow this format: XXX-XXX-XXX
This is the same format as your IRD (Inland Revenue Department) number. If the format is incorrect, you’ll see an error message and won’t be able to save it until it’s fixed.
How do you verify my GST ID?
We verify New Zealand GST IDs using our tax validation partner. Here’s what that means:
- Your GST ID is checked for validity
- If validation is successful, GST won’t be collected on eligible transactions
- If validation fails, you’ll see a message in your Tax information section
If your GST ID can’t be validated:
- Double-check the number and format
- Make sure it matches your official IRD registration
- Try submitting again
In some cases, we may request additional information.
What will appear on my invoices?
If GST is collected:
- Your invoice will show the GST rate and GST amount
If you provide a valid GST ID and GST is not collected:
- Your invoice may display “GST Reverse Charged” or show no GST line, depending on the transaction
- Your GST ID will appear on your invoice
Upwork’s GST registration number will also appear on invoices once registration is complete.
Can individuals add a GST ID?
Yes. If you’re registered for GST in New Zealand, you can provide a GST ID even if you selected “Individual” as your legal entity type.
What happens if I don’t add a GST ID?
If you’re located in New Zealand and don’t provide a valid GST ID, GST will be collected on applicable transactions.
Does this apply to Enterprise clients?
Yes. Enterprise clients with a New Zealand address may also be impacted. Your account team will share more details if needed.