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Do You Have to Pay Tax on Fiverr UK?

Last updated on September 28, 2022 @ 10:29 pm

The quick answer is no, you don’t have to pay tax on Fiverr UK.

Now, let’s take a look at the slightly longer answer.

As a general rule of thumb, if you’re selling a service or product online, you will need to pay tax on it. This is because most online platforms (such as Amazon, eBay and Etsy) are based in the UK. And, as such, are subject to UK tax laws.

PRO TIP: If you are selling services on Fiverr in the United Kingdom, you will need to pay Value Added Tax (VAT) on your earnings. The current VAT rate in the UK is 20%. This means that if you earn £100 from Fiverr, you will need to pay £20 in VAT to the UK government.

If you do not pay your VAT bill, the HM Revenue & Customs (HMRC) can take legal action against you, which could result in a fine or even imprisonment. So, if you are selling services on Fiverr in the UK, be sure to include VAT in your prices and set aside enough money to pay your VAT bill when it comes due.

However, there are some exceptions to this rule – and Fiverr is one of them.

Fiverr is an online marketplace that allows people to sell their services (known as ‘gigs’) to buyers from all over the world. And, because Fiverr is based in Israel, it isn’t subject to UK tax laws.

So, if you sell your services through Fiverr, you won’t have to pay any tax on your earnings. However, it’s important to note that this only applies to services sold through Fiverr. If you sell products through the platform (such as e-books or physical goods), you will still need to pay tax on those sales.

In conclusion, you don’t have to pay tax on Fiverr UK if you’re selling services, but you will if you’re selling products.

Dale Leydon

Dale Leydon

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