EU, and non-EU VAT fees when hiring freelancers

[w3bmast3r]

Hello - hope you're well!

Let’s say we have a company in Cyprus, and hire freelancers via Upwork, and add a VAT number to Upwork. How does the VAT process and all the numbers look like exactly? For example:

Freelancer charges =  $100

Upwork charges = 2.75% = $2.75 (right?)

VAT charged by Upwork = ?

Thanks in advance!

[AveryO]

Hi Cynthia, 

 The tax rate varies by country, which means your tax percentage will depend on your country's VAT rate. You can find the current VAT rate for your country here.