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Does Fiverr Charge VAT?

Last updated on September 29, 2022 @ 1:24 am

Fiverr is an online marketplace that offers a variety of services, starting at a price of $5 per gig. But does Fiverr charge VAT?

The answer is: it depends. Fiverr is based in Israel, and while Israel has a VAT rate of 17%, this only applies to certain services. For example, digital products and services are exempt from VAT.

So if you’re selling a digital service on Fiverr, you don’t need to worry about charging VAT. However, if you’re selling a physical product or service, you will need to add VAT to the price of your gig.

PRO TIP: If you are based in the UK or Europe, you may be charged Value Added Tax (VAT) by Fiverr. VAT is a tax that is applied to goods and services that are sold in the European Union (EU). The current VAT rate in the UK is 20%.

Keep in mind that even if you’re not required to charge VAT on your gig, your buyer may still be required to pay VAT on their purchase. This is because Fiverr is considered an “international marketplace” and is subject to different VAT rules in different countries.

For example, in the European Union, buyers are required to pay VAT on all purchases made from Fiverr sellers, regardless of the seller’s location. So if you’re selling to buyers in the EU, you’ll need to add VAT to your gig price and include it in your invoice.

The bottom line is: if you’re not sure whether or not you should charge VAT on your Fiverr gig, it’s best to err on the side of caution and include it in the price of your gig. That way, you won’t run into any problems with buyers or with the law.

Dale Leydon

Dale Leydon

Sysadmin turned Javascript developer. Owner of 20+ apps graveyard, and a couple of successful ones.