Guidance for Future

Fiverr Indian Seller’s Tax Details

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Fiverr Indian Seller’s Tax Details. To collect, report, and deliver accurate tax information to the relevant Indian tax authorities, Fiverr is required to collect certain data from India-based sellers – as well as from Indian buyers who purchase from Indian sellers. 

All Indian sellers and buyers will be required to report this data. Their billing information will then be updated accordingly. Sellers 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:

TaxesRateApplies toRequires Data From
GST / TCS1% of the total transaction priceSellersSellers and Buyers
Section 194-O0 to 5% of the total transaction priceSellersSellers 
Promoted Gigs GST18% of the total transaction pricePromoted Gigs sellersSellers 
Fiverr Indian Seller’s Tax Details

Notes:The 18% tax on Promoted Gigs will be applied to future seller 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 Promoted Gigs will be applied to future seller payments. You will receive a receipt stating the tax rate and cost of the services.

TCS under GST 

Sellers 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 seller has completed the required GST/TCS data, they will be able to modify it on theirBilling info page.

. After collecting data from the seller, Fiverr will collect data from buyers who purchase from these sellers. The buyer and seller 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).

How to ensure that your Gig is compliant with the documentation required: 

  • 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.
Fiverr Indian Seller’s Tax Details
Fiverr Indian Seller’s Tax Details

FAQs 

1. What do I need to do to be exempt from tax deduction under 194-O?

Fiverr can’t accept tax exemptions under 194-O. To inquire about tax refunds, please reach out to the Indian tax authorities 

2. Will I get a refund for the tax charges made before I entered my billing information? 

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.

3. Can you help me determine the taxability of my services? 

We would recommend that you consult with your tax advisor to determine the taxability of your services.

4. What info does Fiverr need so I can get my TDS certificate–Form 16A?

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).

5. How is the TDS certificate–Form 16A sent to me?

The certificate is emailed to the email address associated with your Fiverr account. 
6. How often does Fiverr send out a TDS certificate–Form 16A?

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. 

7. Why don’t I get a TDS certificate–Form 16A every quarter?

Fiverr prepares a certificate every financial quarter but only if taxes were deducted from your sales—no tax deductions, then no certificate is issued. 

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