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ValeraNakhuy2019-02-07 15:31:11
Upwork
ValeraNakhuy, 2019-02-07 15:31:11

How much will Upwork take from Belarusians?

A law was passed in Belarus where a Value Added Tax (VAT) is applied to sales of electronic services from non-Belarusian businesses (like Upwork) to Belarusian consumers.
This means that Upwork will start VAT charging on our fees charged to freelancers and agencies in Belarus starting March 1, 2019. VAT charges will NOT apply if you are operating as a separate legal entity in Belarus on Upwork.
If you are a representative of a legal entity on Upwork, please enter your taxpayer identification number (TIN). Upwork will validate the information and send you an email within 3 days letting you know if your information has been validated or declined.
Enter your TIN Now
Once validated, Upwork will not charge this tax. We will print "VAT Reverse Charged" on your invoice, however, and you may be required to self-assess VAT on your VAT return under the reverse-charge mechanism applicable to e-services.
If you are using Upwork as an individual entrepreneur and not for a separate legal entity, a 20% VAT will be applied to the fees we collect from you (eg, Upwork service fees, membership fees, or purchases of additional Connects). Per Belarusian law for digital services, the 20% VAT will be added to the applicable Upwork fees and will appear on your invoices as one bundled fee.
You will not be charged VAT on all earnings from your clients, only on the fees you pay to Upwork.
Here's a simple example of how it would work, assuming a 20% Upwork Service Fee:
Your contract amount $100.00
Upwork service fee (including VAT)
Upwork's service fee is $100 x 20% = $20
E-services VAT to be paid to the Belarus government by Upwork is $20 x 20% = $4
Total fees including VAT is $20 + $4 = $24 -$24.00
Your take-home earnings after fees and VAT $76.00
In other words, considering the example above, you will only be charged VAT on the $20 freelancer service fee you pay, meaning you will be charged $4 for VAT. These amounts will appear on your invoices and Transaction History and will be calculated in US Dollars.
If you have questions regarding your tax obligations, please consult your tax advisor. For more information on our VAT policy, please see this help article. If you have questions, feel free to contact us at [email protected]
Best,
The Upwork Team

I recently received such a letter
As far as I understand, Belarusians will now be charged:
20% VAT and 20% UpWork commission - if you are not an individual entrepreneur
20% VAT from 20% commission + 20% UpWork commission + 10% taxes to the state - if you are an individual entrepreneur
What of this more profitable?
And if I link a payoneer card, will everything be the same as before?

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2 answer(s)
D
Dmitry Bay, 2019-02-07
@kawabanga

In general, it looks like a tax on Google, which was canceled in Russia this year. Very nasty, since even sole proprietors had to pay VAT, and this made a lot of problems. You already have an upwork agent and he does everything for you. It's a little easier. In Russia, they did not pay this tax themselves. Therefore, the burden of VAT was on the shoulders of freelancers.
Of course, payoneer is more profitable if you have somewhere to withdraw $.
It's better to pay taxes in your own country. In general, as always.
Well, most likely you will pay tax if you enter your ID on the site.

L
LastDragon, 2019-02-07
@LastDragon

As far as I understand, the Belarusians will be filming now:

But it seems to me that it says that they will take 20% VAT only from all fees :)

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