Albania applies a 20% VAT on Upwork services like contract initiation, marketplace, and recruiter fees unless users provide a valid Albania VAT ID. This ID exempts clients from the tax being collected by Upwork and appears on invoices. Upwork collects VAT to comply with Albanian tax laws and adjusts charges if tax residence changes.
What's Albania VAT, and why does Upwork collect it?
Value-added tax (VAT) is a tax on goods or services, including our services to you. Albania requires Upwork to collect and send it to the government of Albania unless you provide us with 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 Albania VAT apply to?
Examples of services where VAT applies:
- Contract Initiation Fee
- Marketplace 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 Albania VAT rate?
It's 20% of the cost of the taxed service.
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 on your invoices and transaction history.
Am I required to provide an Albania VAT ID?
No, but if you provide a valid Albania 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 give you a prompt response when you enter it. 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
What's the Albania VAT ID format?
Your Albania VAT ID number is a unique ID that you may request from your government by registering for VAT in Albania — not your tax ID. It has 10 alphanumeric characters that start and end with a letter — like this, for example: A23456789B.
To learn more, visit the Albania tax authority’s website
Does Albania offer any VAT exemptions?
Albania 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 Albania VAT if I change my location or information?
If you update your tax residence in your Tax information, we'll automatically adjust what we collect to correspond with any taxes that apply in your new country.
You may have to revalidate your VAT ID or similar 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
Albania’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Albania and have not provided us with a valid VAT ID.
We are still required to collect VAT even if you are only residing in Albania 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 Albania 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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