Fiverr Community Forum

Does Fiverr collect sales taxes from buyers and report them or is it the sellers responsibility?

All what I found on Fiverr is that they collect it from certain countries and I am confused. What if buyers are located in other locations. Do you guys the sellers collect sales taxes from buyers or not? Do you let Fiverr take care of this part?
Please do not give me a link in Fiverr to read. I read it all. I just need someone to share their personal experience. Thank you

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Hi,
Fiverr only takes its own cut (20%) on what is paid by the buyer to the seller. The case of withholding tax (in which the employer pays tax for the employee) does not employ here, as you’re not directly employed by fiverr. Rather you’re employed in a freelance manner by a buyer. And that buyer pays only for the job. If, however, you’re employed by an LLC in US, for example, then they might pay withholding tax to the US government.

In my opinion, the bottom line is that a freelancer needs to pay the income tax in his own country.

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In the US Fiverr collects our tax information and will send it to our tax authorities if we make over $20,000.

As a seller, you don’t need to worry about sales tax from buyers etc. - Fiverr deals with all of that. :slightly_smiling_face:

No, Fiverr does not deal with all of that unless you are a US Citizen and fill out the info for a 1099 Tax Forum.

Or in your country does Fiverr have you fill out a tax form for them to send to your tax authority? :thinking:

I think there might be a bit of confusion between sales tax e.g. VAT (paid by buyers) and income tax as we call it (paid by sellers). Maybe the OP can come back at some point to clarify? :slightly_smiling_face:

Nope, aside from US sellers, every seller needs to handle their taxes.

Fiverr doesn’t handle taxes for anyone outside of the US. I for one never had Fiverr do anything tax-wise for me. It’s that time of the year for me too, when I have to handle taxes myself. So yeah… no tax assistance from Fiverr. Nor do you need it, as it’s not overly complicated, plus one can hire a tax pro!

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Income tax - understood! :slightly_smiling_face:

But the OP was asking

Which I took to refer to sales tax like VAT etc. paid by buyers.

Again, hoping the OP comes back to clarify.

Added - I think the OP might be repeating their question from here:

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I saw that.

Pretty sure he was talking about income tax. Because he said they collect it from certain countries. VAT and other stuff. Anyway, that I don’t know. What I know is that as a seller I am not responsible for VAT.

You have already created a topic about this as referred to by @logovideosuk above.

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