Greelance Inc. will charge the Goods and Services Tax (GST) to Freelancers and Agencies in Australia, unless you provide a valid Australian Business Number (ABN) and acknowledge that you’re registered for GST. GST will be assessed on fees for services provided by us and not on the fees you charge your clients for the services you provide to your clients.
Method of Calculating GST
GST will be applied to Greelance Inc. Service Charges fees. This tax will be collected by Greelance Inc. and remitted to the Australian Taxation Office, unless you provide a valid ABN number and acknowledge that you’re registered for GST. If you don’t have an ABN, then GST will be charged as explained hereunder:
| Your Contract Account | $1000 |
| Greelance Inc. Service Fee (5% of $1000) | -$50 |
| GST on Service Fee (10% on $50) | -$5 |
| Net earning after Service Fee & GST to Freelancer/Agency | $945 |
These amounts will be calculated in U.S. Dollars and will be charged on the service fee charged by Greelance Inc. from Australian citizens.
Note: You’ll see the GST on the invoice from Greelance Inc. to you. The invoices between you and your clients will not change.
You can add your 11-digit ABN and confirm that you are registered for GST. Until you enter your valid ABN and you’ve acknowledged that you’re registered for GST, Greelance Inc. will charge GST. This means that a GST charge will show up on any invoices occurring before your valid ABN is successfully saved to your profile and you’ve acknowledged you’re registered for GST. We can’t refund you this amount. If you have an ABN and are registered for GST, please enter ABN immediately before receiving any payment from the Greelance Inc. platform, to avoid being charged. If you don’t have an ABN or aren’t registered for GST then you will be charged with GST even if you are below the exemption limit of $75,000. More information about Australia taxes can be seen from the Australian Taxation Office site and the Australian Business Registration page .
VAT is applied to the Greelance Inc. Service Fee. The tax is collected by Greelance Inc. and remitted to the respective EU Government. We remit the VAT payment we collect to your government through the Mini One Stop Shop (MOSS) mechanism instituted by the EU.
VAT is shown on your invoices. The tax rate varies by country, which means your tax percentage will depend on your country’s VAT rate. You can find the current VAT rate for your country here at the European Nation site.
Current National VAT rates (E.U)
| Country of EU | E-Service (% of VAT) |
| Austria | 20 |
| Belgium | 21 |
| Bulgaria | 20 |
| Cyprus | 19 |
| Crez republic | 21 |
| Germany | 19 |
| Denmark | 25 |
| Estonia | 20 |
| Greece | 24 |
| Spain | 21 |
| Finland | 24 |
| France | 20 |
| Croatia | 25 |
| Hungry | 27 |
| Ireland | 23 |
| Italy | 22 |
| Lithuania | 21 |
| Luxembourg | 17 |
| Latvia | 21 |
| Malta | 18 |
| Poland | 23 |
| Portugal | 23 |
| Romania | 19 |
| Sweden | 25 |
| Slovenia | 22 |
| Slovakia | 20 |
Greelance Inc. doesn’t require anyone to have a VAT number but we will charge VAT on the services given to Freelancers and Agencies within the EU unless they provide a valid VAT number.
In case a Freelancer/Agency does not provide a VAT number, Greelance Inc. shall charge VAT on Service Charges Fees as under;
| Contract Amount (Hourly/Fixed) | $1000 |
| Greelance Inc. Fee @5% | -$50 |
| VAT Charges 20% on $50 (VAT charges applicable country wise as mentioned above) | -$10 |
| Take Home Earnings | $940 |
Note: We will not charge VAT if a Freelancer or Agency has a valid VAT number.
If you submit a tax ID for a business, you must provide a document showing you own the business for VAT to be approved. You can check if your VAT number will be validated on the VIES website here. After you submit your VAT number to Greelance Inc., we will validate the number, then email you to confirm whether it was validated or declined. It typically takes up to 3 business days for Greelance Inc. to validate your VAT number.
If your VAT number was declined, it was likely because:
Note: Greelance Inc. will charge VAT on any invoices created before and during the validation process. We can’t refund you this amount. You may be able to claim credit for such amounts on your VAT return.
If you are a Freelancer/Agency with an established business in or operating from Mexico, we will begin collecting VAT on the Greelance Inc. fees that you pay.
We are required to collect this tax under Mexican law. Once we begin collection, we will remit the funds to the Mexican Government.
Calculating VAT @16% (Charged even if RFC provided)
When collection starts, as a Freelancer registered in Mexico you will be assessed a 16% VAT on the following:
For example, let’s say you earn $400 from a new client. You’ll be charged the regular 5% Freelancer Service Fee which comes to $20. Under Mexican law, we will then apply the 16% VAT to that $20 fee. This means we would collect $3.20 in VAT from you. You will not be charged VAT on your earnings.
Claim Credit with RFC
| Contract Amount (Hourly/Fixed) | $400 |
| Greelance Inc. Fee @5% | -$20 |
| VAT Charges 16% on $20 | -$3.20 |
| Take Home Earnings | $376.80 |
In order to claim credit for any VAT paid ($3.20in the above example) in Mexico, you must have your Registro Federal de Contribuyentes (RFC) on file with Greelance Inc. at the time that the VAT is collected.
Why is VAT being collected?
A law was passed in Mexico which requires VAT to be collected from individuals and businesses operating from Mexico when they purchase electronic services from non-Mexican businesses (like Greelance Inc.). To comply with this law, we need to collect VAT on the services we provide to Freelancers and Agencies in Mexico and forward this tax to the Mexican tax authorities. Greelance Inc. is an online platform that brings Freelancers and clients together. Greelance Inc. ‘s services qualify as electronic services, which are subject to VAT at the place where the customer (i.e., the Freelancer/Agency or client) is established or resides. Therefore, the services supplied by Greelance Inc. to Freelancers/Agencies and clients who reside in, have a permanent address in, or are established in Mexico are subject to VAT there. Greelance Inc. is responsible for charging, collecting, and remitting this VAT when providing these services to our Mexican-based customers. Greelance Inc. is required to collect VAT from Freelancers/Agencies and clients who reside in, have a permanent address in, or are established in Mexico. If you are exempt from VAT in Mexico, you must claim a credit from the Mexican authorities when you file your taxes. In order to do so, you must have your Registro Federal de Contribuyentes (RFC) on file with us — any VAT collected from you during a time when your RFC was not on file with us will not be claimable.
Income Tax Deductions;
How Mexican income tax withholding works
Example;
| Contract Amount (Hourly/Fixed) | $400 |
| Greelance Inc. Fee @5% | -$20 |
| VAT Charges 16% on $20 | -$3.20 |
| Less I.Tax withholding 1% of $400 | -$4.00 |
| Take Home Earnings | $372.80 |
| Contract Amount (Hourly/Fixed) | $400 |
| Greelance Inc. Fee @5% | -$20 |
| VAT Charges 16% on $20 | -$3.20 |
| Less I.Tax withholding 20% of $400 | -$80.00 |
| Take Home Earnings | $296.80 |
VAT is applied to the Greelance Inc. Service Fee. The tax is collected by Greelance Inc. and remitted to the Russian government. If you are using Greelance Inc. as a Freelancer, a 20% VAT will be applied to the following:
You will not be charged VAT on earnings from your client or any fees you pay. Here’s an example:
| Contract Amount (Hourly/Fixed) | $1000 |
| Greelance Inc. Fee @5% | -$50 |
| VAT Charges 20% on $50 | -$10 |
| Take Home Earnings | $940 |
A law was passed in Russia according to which VAT is now charged to customers, who are established or residing in Russia when they purchase electronic services from non-Russian businesses. Greelance Inc.’s services qualify as electronic services. To comply with this law, we need to collect VAT on the services we provide to Freelancers/Agencies and clients in Russia and forward this tax to the Russian government. Therefore, the services supplied by Greelance Inc. to Freelancers/Agencies who reside, have a permanent address, or are established in Russia are subject to VAT there. Greelance Inc. is responsible for charging, collecting and remitting this VAT when providing these services to our Russian customers.
The Form W-8BEN is used to confirm you’re not a U.S. taxpayer and that Greelance Inc. is not required to withhold taxes from your earnings. For record-keeping purposes, Greelance Inc. requires a Form W-8BEN for all non-U.S. taxpayers paid on Greelance Inc. Once you file your Form W-8BEN, the system will activate your eligibility to access funds immediately.
To provide Greelance Inc. with your Form W-8BEN information
All U.S. persons are required to fill Form W-9;
All Freelancers/Agencies who are U.S persons should file a Form W-9 with Greelance Inc. (all others should file a Form W-8BEN). You sign electronically by submitting the form.
To provide Greelance Inc. with your Form W-9;
Report U.S. Income from Greelance Inc.;
You’ll receive a 1099-K/ 1099-NEC if you receive at least $600 in payments from your clients on Greelance Inc. in 2022. If you reach this amount, you’ll receive a 1099-K/ 1099-NEC from Greelance Inc. in January 2023. It is similar to the form W-2, which is issued to the employees.
NOTE: Greelance Inc. cannot provide tax advice. However, you are advised to take expert advice from your own tax consultant.
Sales Tax (U.S.)
Greelance Inc. is an online business platform; sales tax on Greelance Inc. services are applicable only in certain states mentioned hereunder;
Sales tax amounts @7.1%
Greelance Inc. only charges sales tax in states where it is required. The average sales tax assessed on Greelance Inc. services is 7.1%, and is applied to the services offered by us in the following locations (implemented or are in the process of implementation);
VAT: Freelancers/Agencies operating from the United Kingdom need to update VAT numbers at Greelance Inc. Otherwise VAT @20% will be charged on the Greelance Inc. Service Charges Fee.
New tax rules are in effect for certain self-employed individuals in the United Kingdom and some of their clients. IR35, also known as the Off-Payroll Working Rules, may apply when the Freelancer/Agency operates under a personal services or similar company. In general, IR35 shifts the responsibility of worker classification from self-employed individuals working through their own limited company to, in some cases, their clients. To determine whether IR35 applies to the Client/ Freelancer/ Agency, it’s best to check with your own tax advisors.
Greelance Inc. will collect Goods and Services Tax (GST) on fees from Freelancers/Agencies in Canada unless they have provided their GST/HST or QST number to us. Canada’s GST is a value-added tax, a type of sales tax. The Canadian government assesses GST of 5% on digital services, including those provided by Greelance Inc. Provinces assess a similar tax — because of this, overall GST/HST rates vary by province (see “Taxes by Province” below).
If you don’t have a GST/HST or QST number, we will be required to assess the tax on the following:
Note that Greelance Inc. only collects GST/HST or QST for fees you pay to us. We do not collect GST/HST from your clients on your behalf. If you are required to collect GST/HST or QST from your clients, that is your responsibility.
Taxes by Province
Your precise tax burden under the new law will vary depending on your location when Greelance Inc. provides services to you. These taxes are levied both at the national and provincial level. Because each province’s laws are different, your tax will fall into one of these four categories:
tax which is then collected by the CRA
government body
government body
The chart below shows which combination of national and provincial taxes are collected on a per-province basis.
| Province | Type | Nat’l. rate | Prov. rate | Total Tax Rate |
| AB | GST | 5% | 0% | 5% |
| BC | GST/PST | 5% | 7% | 12% |
| MB | GST/PST | 5% | 7% | 12% |
| NB | HST | 5% | 10% | 15% |
| NL | HST | 5% | 10% | 15% |
| NT | GST | 5% | 0% | 5% |
| NS | HST | 5% | 10% | 15% |
| NU | GST | 5% | 0% | 5% |
| ON | HST | 5% | 8% | 13% |
| PE | HST | 5% | 10% | 15% |
| QC | GST/QST | 5% | 9.975% | 14.975% |
| SK | GST/PST | 5% | 6% | 11% |
| YT | GST | 5% | 0% | 5% |
Example:
We will use the regular 5% Freelancer/Agency fee as an example. If you earn $400 from a client, we will charge you the 5% Freelancer fee, $20 in this example. Under Canadian law, GST is applied to that $20 fee. Here’s how that breaks down by province:
Entering your GST/HST/PST or QST Number;
Greelance Inc. is required to collect Canadian GST and provincially equivalent taxes when our digital services are delivered to consumers. If you have a GST/HST/PST and/or a QST number, you are not considered to be a consumer and therefore, are not required to pay these taxes.
INDIA INCOME TAX
INDIAN TDS – 1% (IF PAN PROVIDED) / 5% (IF NO PAN PROVIDED)
INDIA GST
At the present time, Greelance Inc. is not registered in India and therefore will not assess the GST on transactions there. It will be implemented as and when it becomes mandatory.
GREELANCE INC. SHALL CHARGE TAXES AT THE BELOW MENTIONED RATES, WHICH SHALL BE AMENDED FROM TIME TO TIME AS PER CHANGES IN TAX LAWS OF THE RESPECTIVE COUNTRIES;
| S.No. | Country | Taxes | Remarks |
| 1 | Argentina | VAT @21%
. |
As a result of the 2017 tax reform, VAT legislation currently includes ‘digital transactions’ (e.g. digital services, hosting, on-line technical support, software services, Internet services) provided from abroad as a taxable event. Hence, these types of services are now subject to VAT at a 21% rate if they are provided by a non-resident entity to an Argentine final customer, on condition that they are actually used in Argentina. |
| 2 | Australia | GST @10% | Detail given in the above paragraphs. |
| 3 | Brazil | Not yet notified | Not yet notified |
| 4 | Canada | If you don’t have a GST/HST/PST or QST number, Greelance Inc. will be required to assess the tax on the following:
GST – 5% PST/HST/QST (Province wise detail given above) |
Detail given in the above paragraphs. |
| 5 | China | 0% for qualified Service Export | No Tax |
| 6 | France | VAT @20% | Detail given in the above paragraphs. |
| 7 | Germany | VAT @19% | Detail given in the above paragraphs. |
| 8 | India | 1% if PAN provided
5% if PAN not provided |
As per provisions of Section 206AA, E-Commerce operators should deduct TDS @1% at the time of credit of the amount of sale of goods, services, or both to the account of an e-commerce participant or at the time of making payment. |
| 9 | Indonesia | VAT @10% | Non-resident digital businesses with B2C sales to consumers based in Indonesia now have an obligation to register, collect, and remit 10% VAT on their sales there. The payment of the VAT (possible to do so in USD) collected from consumers must be done no later than the end of the following month, while reporting is done quarterly no later than the next month after the quarterly period ends. |
| 10 | Italy | VAT @22% | Detail given in the above paragraphs. |
| 11 | Japan | JCT TAX @10% | Foreign businesses supplying digital services to Japanese consumers will have to account for a new 10% consumption tax. Businesses with a taxable turnover of ¥10 million in Japan will be affected. This threshold of ¥10 million is the equivalent of USD$89,500, EUR€77,000, or GBP£68,000. |
| 12 | Republic of Korea | VAT @10% | The South Korean VAT system extension to cover cross-border sales to customers based there also comes with no threshold to registration. The reasoning behind the extension of the VAT system to cover these supplies was the government’s motivation to “level the playing field” between domestic and international goods and service providers. The overwhelming belief – at Government level – was that domestic suppliers were being undercut by international counterparts, who were not subjected to the standard VAT rate. |
| 13 | Mexico | Tax Withholding 1%/20%
Additional VAT 16% |
If the VAT number is provided by the Freelancer/Agency then only 1% Withholding tax will be deducted. |
| 14 | Russia | VAT 20%
BAN DUE TO SANCTION OF US GOVT. |
NONE OF THE RUSSIAN IS AUTHORIZED TO USE THE PLATFORM OF GREELANCE INC. UNTIL THE LIFTING OF US SANCTIONS. |
| 15 | South Africa | VAT @15% | VAT rate: 15%
South Africa’s tax on digital services was unveiled by the South African Revenue Service (SARS) on June 1, 2014. There was an extension of the definition of affected digital services in April 2019 as well as an increase in the threshold for registration from ZAR50,000 to ZAR1,000,000. The VAT rules in South Africa require non-resident suppliers of certain “electronic services” to South African residents (or if payment originates from South Africa) to register for VAT. |
| 16 | Turkey | VAT @18% | Turkey’s move to extend its VAT system to cover cross-border digital services supplied by non-resident businesses was officially announced via a Draft Communiqué released on December 5, and updated again on December 22. The new rules came into effect on January 1, 2018. |
| 17 | United Kingdom | VAT @20% & IR35 | Detail given in the above paragraphs. |
| 18 | United States | Form W-9 & Sales tax @7.1% | Detail given in the above paragraphs. |
| 19 | European Union | VAT rates given above | Detail given in the above paragraphs. |
| 20 | Saudi Arabia | VAT @15% | VAT 15% (increased from 5% as per July 1, 2020) For electronic services, the place of supply shall be Saudi Arabia by any cross-border entity. |
| 21 | Spain (Guest Member) | VAT @21% | Detail given above in EU details |