Value Added Tax (VAT)
Freelancer.com charges Value Added Tax (VAT) on the services provided to users registered in certain countries. VAT is applied on all fees charged by Freelancer.com such as project and contest fees, membership fees, and exam fees, not on payments charged by freelancers to clients for projects completed on the site. VAT rates are based on the local rate of the users’ country of residence. This tax is collected by Freelancer.com and remitted to the respective government agencies.
VAT is shown on the invoices of the fees paid to Freelancer.com, which can be found on the Transaction History page.
The fees charged by Freelancer.com for its services are listed on the Freelancer Fees and Charges page.
European Union (EU) and the United Kingdom
Freelancer.com users from United Kingdom and the European Union member countries registered as individuals, not as businesses or companies, are charged Value Added Tax (VAT). VAT rates are based on the users’ country of residence.
Freelancer.com users registered as businesses or companies are exempted from VAT. The business or company’s VAT information should be provided for the VAT exemption to apply:
1. Click your profile picture thumbnail from the main menu bar, and choose Settings.
2. Click Payment & Financials.
3. On the Tax Information section, choose your VAT country, and enter your VAT number. There is no need to input your country code as it is pre-filled once the VAT Country is chosen.
4. Click Add VAT number to complete.
Your VAT number will be shown on your invoices, but there will be no tax charges as you will be exempted from VAT.
If you do not have a business VAT, but your service is exempt from VAT or your aggregate annual turnover is less than the VAT registration threshold, you can state your reason for not having a VAT number to be exempted.
1. Click on Are you exempt from VAT? on the Tax Information section of the Payment & Financials setting page.
2. Choose the reason for exemption.
3. Click Save Reason.
Rest of the world
Other countries which VAT also apply include:
Disclaimer: Freelancer and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors.