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Do I Pay VAT on Fiverr?

Last updated on September 29, 2022 @ 1:11 am

When you purchase something from a store, you’re used to paying value-added tax (VAT). It’s usually a few percent of the total bill, and it goes to the government.

But what about when you buy something online? Do you have to pay VAT on Fiverr?

The simple answer is: no, you don’t have to pay VAT on Fiverr. Fiverr is an online platform that connects freelancers with clients who need their services. Because Fiverr is based in the United States, it isn’t subject to VAT.

PRO TIP: If you are receiving services from Fiverr, you may be required to pay Value-Added Tax (VAT). This tax is based on the country in which you reside and the country from which the Fiverr service is being rendered. For example, if you are living in the United Kingdom and receiving services from a Fiverr seller based in the United States, you would not be required to pay VAT. However, if you are living in the United States and receiving services from a Fiverr seller based in the United Kingdom, you would be required to pay VAT.

However, that doesn’t mean that you won’t have to pay VAT if you use Fiverr. If you’re based in the European Union (EU), you may have to pay VAT on your Fiverr purchases.

The EU has a “VAT on services” rule that says that any service purchased from a company outside of the EU may be subject to VAT. The rate varies by country, but it’s typically around 20%.

So, if you’re based in the EU and you purchase a $5 gig on Fiverr, you may have to pay an additional $1 in VAT. That said, many freelancers who sell gigs on Fiverr are also based in the EU. In that case, they would be responsible for paying the VAT themselves.

In summary, if you’re based in the United States, you don’t have to pay VAT on Fiverr. However, if you’re based in the European Union, you may have to pay VAT on your Fiverr purchases

Madison Geldart

Madison Geldart

Cloud infrastructure engineer and tech mess solver.