Armenia imposes a 20% VAT on certain Upwork client services, including marketplace, initiation, and recruiter fees. Upwork must collect and remit this tax unless a valid Armenia VAT ID is provided. Clients can avoid VAT charges by registering a proper VAT ID, which differs from a regular tax ID.
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In this article
- What's Armenia VAT and why does Upwork collect it?
- What services for clients does Armenia VAT apply to on Upwork?
- What's the Armenia VAT rate?
- Am I required to provide an Armenia VAT ID?
- What's the Armenia VAT ID format?
- Are there exemptions to the Armenia VAT ID?
- What if I change my location or other information?
- Frequently Asked Questions
What's Armenia 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 Armenia requires Upwork to collect it and send it to the government of Armenia 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 for clients does Armenia VAT apply to on Upwork?
- Marketplace Fee
- Contract Initiation Fee
- Conversion Fee
- Recruiter Fee
- Featured Job post 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 Armenia VAT rate?
It's 20% of the cost of the service being taxed.
Example: On $100 USD in Client Marketplace 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 on your invoices and Transaction History.
Am I required to provide an Armenia VAT ID?
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. If you provide a valid VAT ID:
- 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 displays on your invoices. To change what displays there, you'll need to update your VAT ID
What's the Armenia VAT ID format?
Your Armenia VAT ID number is a unique ID that you can request from your government by registering for VAT — not your tax ID. It has 9 numeric characters that end with a 1 — like this, for example: 1234568/1
To learn more, visit the Armenia tax authority’s website.
Are there exemptions to the Armenia VAT ID?
Armenia does not offer any applicable exemptions from VAT, but you can avoid VAT charges being collected by Upwork by providing a valid VAT ID.
What if I change my location or other information?
If you update your tax residence in your Tax information, we'll automatically adjust your VAT or similar tax based on your new country's rates, if any. You'll have to enter your new VAT ID.
You may have to revalidate your VAT ID if you make other changes to your information, such as changing your legal name.
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
Frequently Asked Questions
Armenia’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Armenia and have not provided us with a valid VAT ID.
We are still required to collect VAT even if you are only residing in Armenia temporarily. If you move to another country, you can update your tax residence in your Tax information. 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.
No, we remit that money directly to the Armenia 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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