As a freelancer, you are probably always on the lookout for new ways to market your services and to reach new clients. Fiverr is a great platform for doing just that.
But before you can start selling your services on Fiverr, you need to decide if you need a VAT number.
As a general rule, you only need a VAT number if you are selling services to businesses in the European Union (EU). If you are only selling to consumers in the EU, then you do not need a VAT number. However, there are some exceptions to this rule.
If you are based in the EU and you are selling digital products or services (such as e-books, software, or website design), then you will need to charge VAT on your sales. This is because digital products and services are considered “taxable supplies” under EU law. The good news is that you can use Fiverr’s VAT Calculator to figure out how much VAT you need to charge on your sales.
If you are based outside of the EU, then you do not need to charge VAT on your sales. However, you may still need to provide a VAT number to Fiverr if you are selling digital products or services to customers in the EU. This is because Fiverr is required by law to collect and remit VAT on behalf of its non-EU sellers.
So, do you need a VAT number for Fiverr? If you are based in the EU and you are selling digital products or services, then the answer is yes.
If you are based outside of the EU, then the answer is maybe. However, even if the answer is “no,” it’s still a good idea to get a VAT number so that you can avoid any potential problems down the road.
VAT is a tax that is applied to most goods and services in the European Union (EU), and Fiverr is based in the EU. This means that if you sell goods or services through Fiverr to customers in the EU, you may be required to charge VAT on your sales.
If you do not have a VAT number, you may still be able to sell on Fiverr, but you will be required to pay VAT on your sales. This can add significant cost to your business, so it is important to be aware of this before you start selling on Fiverr.
Do You Need a VAT Number for Fiverr?
As a general rule, freelancers only need a value-added tax (VAT) number when they’re providing business-to-business (B2B) services within the European Union (EU).
If your freelance business offers digital products or services—like e-books, software, or web design—to customers within the EU, however, you will be required by law to charge VAT. The good news? You can use Fiverr’s free VAT calculator tool determine exactly how much tax you’ll need to add on to each sale.
Do I Need A VAT Number?
In order to determine whether or not your freelance business needs a value-added tax (VAT) number, we must first understand what activities require one. According to the European Commission’s website, “You must get a VAT number when your taxable turnover in any 12 month period exceeds €37,500” (ec.eu, 2018). This means that if your company plans on doing any business within the 12 month period that will total more than €37,500 worth of transactions, then it must apply and be approved for a VAT number.
In addition, “If [your company] makes taxable supplies of goods or services in another EU country but does not have an establishment (fixed premises such as an office) there” (Conclusion:
Based on the information above, we can conclude that companies providing business services within Europe must apply and be approved for a value added tax (VAT) number if their taxable transactions exceed €37,500 within any 12 month period.
