Clients in the European Union are subject to VAT on Upwork services, with rates varying by country. Providing a valid EU VAT ID exempts clients from having these charges collected by Upwork. VAT ID formats differ by nation and must be verified. Some EU territories are exempt, and tax settings adjust automatically with location changes.
What's the EU 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 the EU requires Upwork to collect it and send it to your country's government 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.
Examples of services that VAT applies to in the European Union
- Marketplace Fee
- Contract Initiation Fee
- Featured Job Post purchases
- Conversion Fee
- Recruiter Fee
Since we charge tax when your government requires it, this tax may change or apply to additional services in the future.
What's the EU VAT rate
The rate varies by country, so your tax percentage will depend on your country's VAT rate. Find the current VAT rate for your country here.
You’ll see the estimated amount of tax when you check out and the tax charged on your invoices and transaction history.
Providing your EU VAT ID
- 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 give you a prompt validation response. You can also see your VAT ID status on your Tax information
- The VAT ID you provide to us displays on your invoices. To change what displays there, you'll need to update your VAT ID
EU VAT ID format
Your VAT ID number is a unique ID that you may request from your government by registering for VAT in the EU — not your tax ID number. It varies by country and begins with your country’s code.
Country specific formats:
- Austria (AU): Nine alpha-numeric characters, for example U12345678
- Belgium (BE): Ten characters, starts with an 0 or 1, for example 0999999999 or 1999999999
- Bulgaria (BG): Nine or ten characters, for example, 123456789 or 1234567890
- Croatia (HR): Eleven numeric characters, for example, 12345678912
- Cyprus (CY): Nine alph-numberic characters, last character is a letter, for example, 12345678X
- Czech Republic (CZ): Eight to ten numeric characters, for example, 12345678, or 123456789, or 1234567890
- Denmark (DK): Eight numeric characters, for example, 12345678
- Estonia (EE): Nine numeric characters, for example, 123456789
- Finland (FI): Eight numeric characters, for example: 12345678
- France (FR) Eleven alpha-numeric characters, for example, XX123456789
- Germany (DE): Nine numeric characters, for example, 123456789
- Greece (EL): Nine numeric characters, for example, 123456789
- Hungary (HU): Eight numeric characters, for example, 12345678
- Ireland (IE): Eight or nine alpha-numeric characters, often with a letter in the last one or two spaces, for example, 12345678X or 1234567XX
- Italy (IT): Eleven numeric characters, for example, 12345678912
- Latvia (LV): Eleven numeric characters, for example, 12345678912
- Lithuania (LT): Nine or twelve numeric characters, for example, 123456789 or 123456789012
- Luxembourg (LU): Eight numeric characters, for example, 12345678
- Malta (MT): Eight numeric characters, for example, 12345678
- Netherlands (NL): Twelve alpha-numeric characters, and the tenth character is always a B, for example, 123456789B11
- Poland (PL): Ten numeric characters, for example, 1234567890
- Portugal (PT), Nine numeric characters, for example, 123456789
- Romania (RO): Between two and ten numeric characters, for example 12, or 12345, or 1234567890
- Slovakia (SK): Ten numeric characters, for example, 1234567890
- Slovenia (SL): Eight numeric characters, for example, 12345678
- Spain (ES): Nine alpha-numeric characters, for example, 123456789
- Sweden (SE): Twelve numeric characters, for example, 123456789012
To learn more, visit the European Commission website or the tax authority website for your country.
Are there any exemptions for EU VAT?
A few EU territories are exempt from VAT, and we'll automatically assess zero VAT in those locations. Learn more on the official EU website.
Changing your location or information
If you change locations and update your tax residence in your account's Tax information, we'll automatically adjust your VAT to correspond with the tax rates in your new country of residence, 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
Your country’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in your country and have not provided us with a valid VAT ID.
No, but if you do not provide a valid VAT ID, we're required to charge you VAT and remit it to your government.
If you provide a valid VAT ID, we will not be required to collect the tax. To enter your VAT ID, go to your account’s Tax information.
We're still required to collect VAT even if you're only residing in a country temporarily. If you move to another country, you can update your tax residence in your account’s 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 your 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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