English
PortuguêsThe fees charged by TugaFreela — the client fee and the freelancer commission — are the consideration for an intermediation service provided by W8 Atlantic Unipessoal Lda, established in Portugal. VAT on those fees follows the place-of-supply rules of article 6 of the Portuguese VAT Code.
| Where you are | What happens |
|---|---|
| Portugal | Fees carry Portuguese VAT at the standard rate in force. |
| Business or professional elsewhere in the EU | No Portuguese VAT is charged. The reverse charge applies and you account for the tax in your own country. Documents carry the note «VAT – Reverse charge». |
| Private consumer elsewhere in the EU | Fees carry Portuguese VAT while the annual €10,000 threshold for cross-border supplies to consumers is not exceeded. Above it, your country's rate applies, declared through the OSS scheme. |
| Outside the European Union | Operations are not subject to VAT in Portugal. |
VAT number and VIES
To benefit from the reverse charge, users established in another Member State must enter in their profile a VAT identification number that is valid and registered in VIES. We check that number against VIES. Until it is confirmed, fees are charged with Portuguese VAT. The check is repeated periodically: if the number stops appearing in VIES, we go back to charging Portuguese VAT.
TugaFreela does not give tax advice. The treatment of the service the freelancer provides is their
responsibility. When in doubt, talk to your accountant.