Georgia VAT is an 18% tax on Upwork services for users, such as Marketplace and Recruiter Fees. Upwork collects this tax unless a valid Georgia VAT ID is provided. VAT charges appear at checkout and on invoices, and tax settings update automatically if the user changes their location.
What's the Georgia VAT and why does Upwork collect it?
Value-added tax, or VAT, is a tax on goods or services, including our services to you, and Georgia requires Upwork to collect it and send it to the government of the Georgia unless you provide a valid VAT ID.
We’re required to comply with the tax laws of countries where we do business to operate there.
What services to clients does Georgia VAT apply to on Upwork?
Examples of services for clients where Georgia VAT applies:
- Marketplace Fee
- Contract Initiation Fee
- Conversion Fee
- Recruiter Fee
- Featured Job purchases
Since we charge tax when your government requires it, this tax may change or apply to additional services in the future.
What's the Georgia VAT rate, and where will I see the charge?
In Georgia, the VAT rate is 18% of the cost of the service being taxed. For example, if you pay $100 USD in client marketplace fees, you will pay $18 in tax, for a total of $118.
You’ll see the estimated amount of tax when you check out and on your invoices and Transaction History.
Am I required to provide my Georgia VAT ID, and what happens if I do?
You're not required to provide a valid VAT ID to Upwork, but this is what happens if you do:
- 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 check whether the VAT ID you provide is valid and provide you a prompt response. You can also see your VAT ID status on your Tax information page
- The VAT ID you provide displays on your invoices. To change what displays there, you'll need to update your VAT ID in your Tax information
What's the Georgia VAT ID format?
Your Georgia VAT ID number is a unique ID number that you may request from your government by registering for VAT in Georgia — not your tax ID number. It has 9–11 numbers — like this, for example: 12345678901 for sole proprietorships or 123456789 for business entities.
To learn more, visit the Georgia tax authority’s website.
Does Georgia offer any exemptions to VAT?
Georgia does not offer any applicable exemptions from VAT on services that Upwork provides, but you can avoid VAT charges being collected by Upwork by providing a valid VAT ID.
What happens to my Georgia VAT if I change my location or other information?
If you update your tax residence in your Tax information, we'll automatically adjust your VAT based on your new country's rates, if any.
You may have to revalidate your VAT ID when you change locations, or 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
Georgia’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Georgia and have not provided us with a valid VAT ID.
We are still required to collect VAT even if you are only residing in Georgia temporarily. If you move to another country, you can update your tax residence in your Tax information. We’ll 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.
No, we remit that money directly to the Georgia 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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