1. Platform fees
Buyer fee: 5% of each milestone, paid by the Client. Seller fee: 8% of each milestone, paid by the Professional. Both fees are VAT-inclusive.
2. VAT on platform fees
- United Arab Emirates: 5% VAT is included in platform fees.
- Saudi Arabia: 15% VAT is included in platform fees.
- Egypt: 14% VAT is included in platform fees.
Tax invoices for platform fees are issued to both parties. Saudi invoices follow ZATCA e-invoicing requirements; Egyptian invoices follow the Egyptian Tax Authority e-invoice and e-receipt system.
3. Tax on professional services
Professionals are responsible for their own tax registration, VAT on their services and income or corporate tax. The Hub displays the price agreed between the parties and does not add VAT on the Professional's behalf unless the Professional is VAT-registered and states it in the contract.
4. Reserves before payout
When a milestone is released, the platform's accounting engine automatically reserves VAT due on fees and estimated payment processing costs. Only the remaining net platform profit is paid to The Hub's receiving bank account.
5. Segregation of funds
Client and Professional funds are held by licensed third-party escrow and payment providers in connected accounts and are never commingled with The Hub's revenue.