**GST

Internal Info Only! See “Frequently Asked Questions” section below when communicating with users & always be sure to add tag: Tag Only > GST (Goods and Services Tax) in any ticket related to GST.

Australian GST (user-friendly page)

For general questions that cannot be answered here, see a TL first, then ping #ask-taxes .

Per Australia law, the Goods and Services Tax (GST) are applied to international sales of services and digital products provided to Australian consumers. This change means that non-Australian businesses (like Upwork) will be required to collect GST on our sales to Australian users from July 1, 2017 on.

To comply with these changes, Upwork will begin asking freelancers and agencies in Australia to do the following:

• Provide their Australian Business Number (ABN)
• Acknowledge they are registered for GST

Freelancers and agencies should consult their tax advisor to determine their own GST obligations.

Users who provide both pieces of info: will not be charged GST on Upwork services

User who DO NOT provide both pieces of info

(for freelancers and agencies in Australia and does not impact clients in Australia OR freelancers/agencies outside of Australia)

A 10% GST will be charged on the following Upwork fees:

• Upwork service fees
• Membership fee
• Additional Connects purchases

Upwork is required to collect the 10% tax on the services we provide and pay it to the Australian Taxation Office. This tax will not apply to the payments the freelancer/agency receives from clients, only on applicable fees Upwork collects.

Here’s a simple example of how it would work on a contract:

The $2.00 GST would appear in Reports > Transaction History and on the invoice from Upwork to the freelancer. These amounts are calculated in U.S. Dollars.

Beyond this change, freelancers and agencies can continue their work as usual.

[FOR CS AGENT] When a customer reaches out stating they entered their ABN previously and now they want to confirm their GST, but they’re unsure of where to go, lead them through these steps:

Settings > Tax Information tab > find the GST section > then click the trash can icon (in order to confirm their GST, as they already added their ABN previously, they have to delete this entirely, then re-add ABN and GST together)

What is GST, what changed, and how does this affect me?

The Goods and Services Tax, or GST, is a 10% tax on most goods, services and other items sold or consumed in Australia. Recently, Australia introduced a new law applying the GST to international sales of services and digital products provided to Australian consumers. This change means that non-Australian businesses (like Upwork) will be required to collect GST on these sales starting July 1, 2017.

To comply with this change, Upwork will begin collecting GST for freelancers and agencies in Australia.

If you have acknowledged that you’re registered for GST and provided your ABN number to Upwork: You will not be charged this tax by Upwork. Your experience on Upwork will not change.

If you are not registered for GST or don’t have an ABN: We will be required to collect the 10% tax on the services we provide you and pay it to the Australian Taxation Office. You will not be charged this tax on the payments you receive from your clients, only on the fees we collect from you. That means the 10% tax will only apply to the sliding service fee you pay when you earn on Upwork, the fee you pay for a Freelancer Plus membership (if you have one), and the cost of purchasing additional Connects. For example, in the case of freelancer service fees, if your contract amount is $100 and you pay the 20% sliding service fee ($20.00), we will apply the 10% GST to only the $20 service fee, meaning we will collect $2.00 in GST. Your contract amount, service fees, and GST are calculated in U.S. Dollars.

Here’s the example in more detail:

Note: You’ll see the GST listed in your “Transaction History” and on the invoice from Upwork to you. The invoice between you and your clients will not change.

Why are you only starting to charge GST now?

Recently, Australia introduced a new law applying a Goods and Services Tax, or GST, to international sales of services and digital products provided to Australian consumers. This change means that non-Australian businesses (like Upwork) will be required to collect GST on services we provide to Australian consumers starting on July 1, 2017. We will not be required to collect GST if you acknowledge that you’re registered for GST and provide your Australian Business Number (ABN) to us.

I looked at my invoice and don’t see the Goods and Service Tax listed? Why?

Thanks for reaching out. While we are required to start collecting the GST on July 1 and will, we are still updating our invoices so that the amount you are taxed appears on them. This invoice update is scheduled to occur by July 15. Once completed, you’ll be able to view and download invoices that show the amount you paid in GST taxes (we’ll update any invoices from earlier in the month, too). We apologize for the delay.

Do I have to have an ABN or be registered for GST?

Thanks for your question. We do not require freelancers or agencies to be registered for the Goods and Services Tax (GST) or have an ABN to work on our platform. However, if you do not (i) enter your ABN and (ii) acknowledge you are registered for GST, we will collect a 10% GST on all freelancer service fees, the cost of a Freelancer Plus membership, and any amount spent on buying additional Connects. If you live in Australia, you may want to confirm with your local government whether or not you need to obtain an ABN and register for GST.

Is this just a way for Upwork to earn more money?

Thanks for reaching out. No, we will not keep the Goods and Services Tax (GST) that we collect. We are required, by Australian law, to collect it and we will transfer it to the Australian Taxation Office.

How do I apply for an ABN and register for GST?

To learn more about applying for an ABN, visit the Australian Business Register website: https://abr.gov.au/For-Business%2c-Super-funds--- Charities/Applying-for-an-ABN/

To learn more about registering for GST, you can visit the Australian Taxation Office site at https://www.ato.gov.au/Business/GST/Registering-for-GST/.

How do I provide my ABN and acknowledge I’m registered for GST?

We’ll prompt you to provide an ABN and acknowledge you’re registered for the Goods and Services Tax (GST) via email or when you log into your Upwork account. You can also enter your ABN and acknowledge you’re registered for GST on the “Tax Information ” page under “Settings” > “User Settings”, when you’re logged into your freelance or agency account. You can add an ABN at any time from this page, even if you declined to do so initially. Adding the ABN on Upwork should be immediate.

If I have an ABN, does that mean I’m registered for GST?

Having an ABN does not necessarily mean you’re registered for the Goods and Service Tax (GST). To learn more about registering for GST, you can visit the Australian Taxation Office site at https://www.ato.gov.au/Business/GST/Registering-for-GST/.

I have an ABN, but I’m not registered for GST.

Thanks for your question. You need to enter your ABN and acknowledge you’re registered for the Goods and Services Tax (GST) to not be charged the tax on Upwork. To learn more about registering for GST, you can visit the Australian Taxation Office site at https://www.ato.gov.au/Business/GST/Registering-for-GST/.

Do you verify my ABN or that I’m registered for GST?

Thanks for your question. When you enter your ABN on our site our system immediately checks to see if the ABN exists in the Australian government’s database. If our system finds your ABN, you will be able to “Save” the number on our site. And as long as you also acknowledge that you’re registered for GST, we will not charge you the 10% GST. If our system cannot find the ABN you provide in the Australian government database, you will not be able to save the ABN and will be assessed the Goods and Services Tax (GST).

I tried putting in my ABN, but it was rejected. Why?

Thanks for reaching out. Unfortunately we cannot accept your ABN if we cannot validate that the number is present in the Australian government’s database. Please check to see if your ABN is valid and try again.

I don’t have to register for GST because I make less than the $75,000 income threshold (or some other reason).

We understand that you may not required to register for GST for the purposes of your freelance business. However, to comply with the new Australian laws, Upwork has to collect GST on the services we provide. (This means the 10% tax will only apply to the sliding service fee you pay when you earn on Upwork, the fee you pay for a Freelancer Plus membership (if you have one), and the cost of purchasing additional Connects.) The only way for us to confirm whether someone is a taxable person (i.e. a consumer) for GST purposes is for us to (i) collect an ABN and (ii) for that person to acknowledge they are registered for GST. This tax is separate from the services you provide to your clients. To learn more about registering for GST, you can visit the Australian Taxation Office site at https://www.ato.gov.au/Business/GST/Registering-for-GST/.

What currency is the GST charged in?

Your earnings, Upwork service fees and the GST are all calculated in U.S. Dollars. Your take-home earnings appear in your account in U.S. Dollars as well. Any conversion to Australian Dollars (AUD) occurs as usual when you withdraw your earnings.

Will there be any plans to charge GST or similar taxes in other countries too?

Thanks for your question. Plans to charge similar taxes in other countries are evaluated on a country-by-country basis.

Will Upwork charge Australian GST if I move to a different country?

Thanks for your question. If you relocate to another country and update your Upwork profile to show your new location outside of Australia, we will automatically stop collecting the Australian Goods and Services Tax (GST).

How do I change my ABN?

Thanks for your question. You can change your ABN by going to “Tax Information ,” located under “Settings” > “User Settings.”

Where can I find a record of the GST charged?

You will be able to see the Goods and Services Tax (GST) amount collected by us as a separate line item on any invoice from Upwork to you. You can find this by clicking on “Reports,” then “Transaction History” when you are logged into your Upwork account.

I should be exempt from GST, but I don’t have an ABN. (Organization status or entrepreneur) You should not be charging me GST!

Thanks for reaching out. We are required by law to charge the Goods and Services Tax (GST) on the services we provide to “consumers” in Australia. The only way for us to confirm whether or not someone should be taxed (i.e. they are a consumer) for GST purposes is for us to collect an ABN and for that person to acknowledge they are registered for GST.

To learn more about applying for an ABN, visit the Australian Business Register website: https://abr.gov.au/For-Business%2c-Super-funds--- Charities/Applying-for-an-ABN/https://abr.gov.au/For-Business%2c-Super- funds---Charities/Applying-for-an-ABN/

To learn more about registering for GST, you can visit the Australian Taxation Office site at https://www.ato.gov.au/Business/GST/Registering-for-GST/ https://www.ato.gov.au/Business/GST/Registering-for-GST/.

GST is a tax for services and goods. It should be paid by the client, so why are you charging me for that?

Under law, we’re only required to collect the Goods and Services Tax (GST) for the services Upwork provides users. You will not be charged this tax on the payments you receive from your clients, only on the service fees we collect from you. That means the 10% tax will apply to the sliding service fee you pay when you earn on Upwork, the fee you pay for a Freelancer Plus membership (if you have one), and the cost of purchasing additional Connects. Please consult your tax advisor to determine your GST obligations to clients.

Upwork should provide proof / verification that you’ve paid the taxes to the proper authorities. How do I know Upwork isn’t just stealing more of my money?

Thanks for your question. You’ll be able to see the Goods and Services Tax (GST) charges in your “Transaction History" and on the invoices between Upwork and you. By collecting this tax, we are fulfilling our own tax obligation (not a freelancer’s or agency’s tax obligations). We then, under law, transfer the GST collected to Australian tax authorities.

What happens in a situation where a refund is issued?

Thanks for reaching out. In cases where a freelancer issues a refund to a client, we will refund the entire the Goods and Services Tax (GST) paid by the freelancer.

I have an ABN, but I entered it after I had already paid some GST. Can I get refund?

Thanks for your question. Unfortunately, we cannot process a refund of the Goods and Services Tax (GST). The only way for us to confirm whether someone is a taxable person (i.e. a consumer) for GST purposes is for us to collect an ABN and for that person to acknowledge they are registered for GST. As of July 1, 2017, by law we must collect GST from anyone who has not acknowledged they’re registered for GST and transfer it to the Australian Taxation Office.

Why is Upwork doing this? Isn't it a violation of our terms, I'm solely responsible for tax, see 6.7 of the ToS.

Upwork is doing this in compliance with the Australian government’s Goods and Services Tax (GST). Please note we are collecting GST on the services we provide to you as a freelancer or agency. (This means the 10% tax will only apply to the sliding service fee you pay when you earn on Upwork, the fee you pay for a Freelancer Plus membership (if you have one), and the cost of purchasing additional Connects.) Please note this tax is separate from the services you provide to your clients. As a freelancer, you’re responsible for any taxes relating to the services you provide to your clients and should consult your tax advisor to determine your GST obligations.

Will GST be paid to my the Australian government in my name or in Upwork's name?

Thanks for your question. We are paying the Goods and Services Tax (GST) in Upwork’s name because we are required to collect this tax in order to be in compliance with Australian tax laws. Note: As a freelancer, you’re responsible for any taxes relating to the services you provide to your clients and should consult your tax advisor on whether you should invoice your clients for GST.

If I enter my ABN and acknowledge I’m registered for GST, do I still have to pay GST off of Upwork?

It depends on your specific situation. Please consult your tax advisor to understand your specific Goods and Services Tax (GST) responsibilities. Since Upwork has your ABN and confirmation of your registration for GST, we will not charge GST on Upwork fees.

If I provide my ABN and GST info to Upwork, are you going to share that with the Australian government?

We will not share any of your ABN or GST information with the Australian government unless required by law or government regulation.

"It looks as if the Government has delayed the implementation for this GST for a year". Do you have any information on this?

Thanks for reaching out. Any delay in GST you may have heard about pertains to the sales of imported goods worth less than $1000 to Australian consumers. This is different from the new law applying the GST to international sales of services and digital products provided to Australian consumers. Upwork will still be required to collect GST on our sales starting July 1, 2017.

As planned, we’ll start collecting a 10% GST on applicable Upwork fees (e.g. the Upwork service fee, premium Upwork memberships, and purchases of Connects), unless you provide a valid ABN number and acknowledge that you're registered for GST.

I have an ABN, but it’s not being approved. I’ve checked the format and the number and it’s correct.

Instructions for agent:

• Ask the user to provide their ABN so you can check.
• Once they do, look up their ABN in this lookup tool: https://abr.business.gov.au/
• Check to see if the ABN status is valid.
• Also, check to see if the name matches the user.
• If not, please let the user know that’s why it’s not approved.

Response: Thanks for providing your ABN. I’ve checked the number you provided on the ABN Lookup, and it appears that your ABN is (insert reason). We can only approve valid, current ABNs.

Do you have plans to charge GST on the entire fee charged versus the service fee?

We will not be charging the Goods and Services Tax (GST) on the amount paid from the client to freelancer. Upwork is only required to collect GST on the services we provide you, so it is only applicable on the service fees you pay us. This means the 10% tax will apply to the sliding service fee you pay when you earn on Upwork, the fee you pay for a Freelancer Plus membership (if you have one), and the cost of purchasing additional Connects. For example, in the case of freelancer service fees, if your contract amount is $100 and you pay the 20% sliding service fee ($20.00), we will apply the 10% GST to only the $20 service fee, meaning we will collect $2.00 in GST.

Do I have to collect a 10% GST on the services I provide to clients in Australia?

If you provide your services to a client in Australia, you may be required to send a Goods and Services Tax (GST) invoice to the client for your fees. Please consult your tax advisor to determine if you’re required to do this.

Why does Upwork need to collect GST when we don't have to for our clients?

We are collecting the Goods and Services Tax (GST) from freelancers to meet our own tax obligations. If you have clients in Australia, please consult your tax advisor to determine your GST obligations.

Shouldn’t Upwork (or someone) provide some type of documentation about GST for my services to the client?

We are collecting the Goods and Services Tax (GST) on the services we provide to you, but we’re not acting as your GST agent or intervening between what’s required between you and your clients. Please consult your tax advisor to determine if you’re responsible for collecting GST for the services you provide to your client.

I put my ABN in, but it says “Pending approval”. What happens now?

We were unable to validate your ABN in real-time as the Australian government validation service is down. We will validate your ABN once the service is back up. You’ll receive an email if your ABN is invalid and you need to take further action.

Update:

• When ABN status says "Pending Approval".
• Clarification: It is possible for the ABN to be in this state especially when the Australian site is down.

Actions to take:

• Manually access the Australian site and validate if the ABN is correct.
• If so, accept the ABN using OBO - VAT Information.

I’m a client and my freelancer just called me to say that you’re raising prices for freelancers/agencies in Australia. This isn’t fair.

Thanks for reaching out. We are not raising prices for freelancers or agencies in Australia. Due to a change in the Australian Goods and Services Tax laws, we are now required to start collecting the Goods and Services Tax (GST) on the services we provide freelancers. We will not keep the GST we collect; this is simply a tax that the Australian government requires us to collect and remit back to them.