India Sellers Tax

To collect, report, and deliver accurate tax information to the relevant Indian tax authorities, Fiverr is required to collect certain data from India-based freelancers - as well as from Indian clients who purchase from Indian freelancers. 

All Indian freelancers and clients will be required to report this data. Their billing information will then be updated accordingly. Freelancers who fail to complete this information, within 30 days from receiving the first notification, will either have their Gigs frozen or will not be able to publish their Gigs. 
 

Note: Any questions you may have with regards to completing the form, and the specific options that apply to you, must be clarified with your tax advisor.

India sellers tax is based on the following taxes/components:

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  • The 18% tax on Fiverr Ads will be applied to future freelancer payments and will be added to your price per click.
    • You will receive a receipt stating the tax rate and cost of the services.
  • GST on Fiverr Ads will be applied to future freelancer payments.
    • You will receive a receipt stating the tax rate and cost of the services.

TCS under GST 

Freelancers will be required to provide Fiverr with data relevant to GST/TCS calculations. The tax will be calculated out of the total cost of the transaction. Once the freelancer has completed the required GST/TCS data, they will be able to modify it on their Billing info page.

After collecting data from the freelancer, Fiverr will collect data from clients who purchase from these freelancers. The client and freelancer data will enable Fiverr to report the GST/TCS to the relevant Indian tax authorities. 

Section 194-O Tax

Data for the Section 194-O tax will be collected as part of GST/TCS data. The tax itself will be calculated separately out of the total cost of the transaction. 

For example, if you sell a service for $100, when required to pay the TCS under GST - it will be $1, and if you are required to pay the TDS under Section 194-O tax - it will be an additional $1 (assuming that you entered your PAN, otherwise, the TDS under Section 194-O will be an additional $5).

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  • Once you provide all the required tax information, you will be able to continue offering your Gigs at Fiverr. 
  • If you are required to provide your billing information for tax calculations, you will see a banner on the top part of the page with a link to your Billing Info page. Here, you can edit your billing information to be able to continue offering your Gigs at Fiverr.
  • Once you have completed the required billing information, you will not be required to deliver any additional information in order to continue selling your Gigs on Fiverr.

  
  

FAQs

• Your TDS certificates are calculated on 100% of your total Gig amount, while your Statement of Earnings only shows the 80% you receive.
• Fiverr can't accept tax exemptions under 194-O. To inquire about tax refunds, please reach out to the Indian tax authorities.
• Fiverr is not able to refund taxes charged, as they are forwarded to the relevant Indian authorities. As mentioned in the email you received, the deadline to update the tax information was with respect to avoiding your gigs becoming inactive. We deducted taxes according to applicable laws and the information that was available to us at the time the order was made.
• We would recommend that you consult with your tax advisor to determine the taxability of your services.
• You must add your PAN/GSTIN number to your Fiverr billing info page. Once these numbers are added then, going forward, Fiverr will automatically email your TDS certificate (if taxes were deducted from your sales).
• The certificate is emailed to the email address associated with your Fiverr account.
• The certificate is sent on a quarterly basis according to the filing schedule set by the India tax authorities; their schedule is subject to change. 
• Fiverr prepares a certificate every financial quarter but only if taxes were deducted from your sales—no tax deductions, then no certificate is issued.