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If I live in Europe and changed the country in UpWork to Thailand, do I need to pay VAT?
I live in Europe, and UpWork takes 20% VAT
. Now I am preparing for a trip, and I changed the country in advance, I was warned that VAT would also change.
Question, if you leave the country, but live in Europe yourself.
Do I need to pay VAT?
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Those. Do you pay Upwork 40% commission in total? 20% of his base commission and another 20% VAT?
In general, the answer to your question lies in the term "tax resident".
A person is a tax resident of the country where he lives more than 183 days a year.
Describe in more detail. What Europe do you live in? EU, Andorra, Switzerland, Norway, Ukraine :)? Then you can say something specific.
You will not put these 20% VAT in your pocket one way or another. If you work from the EU, then the VAT will be given to the local financial authority. If you work without VAT, then these 20%, respectively, will not be charged at all.
I don’t know about Upwork, but the situation in the EU is like this... Any online service from the EU must charge such VAT on the cost of goods, which is provided for in the country of the buyer from the EU. If the buyer is from Germany, then 19%, for example.
If the buyer is not from the EU, then VAT is not charged accordingly.
If you live in the EU, are engaged in business or self-employment and do not work with VAT, then most likely you are breaking the law. (Most likely, because there are some types of entrepreneurship in some EU countries, where an entrepreneur can work without VAT up to a certain annual turnover).
In addition, in the EU you deprive yourself of the opportunity to write off the VAT that was billed to you.
See that Upwork does not require verification of the place of residence and does not block the account.
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