will begin collecting Value Added Tax (VAT) from freelancers and agencies who use Upwork in Russia.
The 20% tax will be applied only to Upwork service fees, not earnings from your clients. Currently we are registering with the Russian government and will let you know when we start collecting VAT.
No action is needed at this time. We've created a helpful example showing how VAT will be charged to Upwork service fees (membership fees, Connects purchases, freelancer fees).