VAT on Digital Platforms

(01-07-2020 20:13 )FanofCamilla Wrote:  Onlyfans couldn't be bothered to explain the VAT thing but looks like it's tax on top of what the girls charge, rather than included, so the girls don't lose money.

a girl on twitter did mention that it's apparently illegal to charge VAT on tips, in the UK.

In Ireland the employee doesn't pay VAT on tips, so the content creators should be free from VAT, assuming it's the same in the UK, which sounds like the case from your post.

(01-07-2020 21:41 )fucu2 Wrote:  Plus having a message about it the day they are doing it is shite, the same as when they changed their terms of service recently and sent messages after they had changed them

Yep that’s really cheesed off a lot of people that onlyfans only informed people on the same day this change was brought in. This could backfire on onlyfans as a lot of people/models are considering leaving onlyfans now as this for them is the final straw that broke the camels back with only fans

Also these same people are worried people won’t renew their subscriptions after this change & won’t get new subscribers

I wonder how many more platforms will follow onlyfans route and make the same change?

(02-07-2020 06:41 )loved babes56 Wrote:  I wonder how many more platforms will follow onlyfans route and make the same change?

All those who to stay in business have to abide by the law

(02-07-2020 08:02 )SecretAgent Wrote:  

(02-07-2020 06:41 )loved babes56 Wrote:  I wonder how many more platforms will follow onlyfans route and make the same change?

All those who to stay in business have to abide by the law

Yep. I’m on patreon as a patron of Impact Wrestling star Jordynne Grace and they already do this where they add VAT to the subscription. Her lowest tier is $5 a month (£4) but patreon then add the U.K. vat of 20% so the actual cost is $6 a month (around £4.50)

Adultwork have been doing this for years as well. looks like only fans have suddenly realised they’ve got to do this and they’ve messed up badly

(01-07-2020 19:41 )dirtytommy Wrote:  so I presume the girls will get less money?

Looks like all the cost has been passed directly on to the customer as part of every single transaction. In other words it's the content creators OF value over the spenders. Did anyone seriously expect any different?

(02-07-2020 06:41 )lovebabes56 Wrote:  I wonder how many more platforms will follow onlyfans route and make the same change?

SoSpoilt have been charging VAT all along.

But a babe has already pointed out that it is illegal to charge VAT on tips here, but I would argue that there is a grey area in certain business sectors at what is termed as a tip and what is termed as a service.

(02-07-2020 08:02 )SecretAgent Wrote:  

(02-07-2020 06:41 )loved babes56 Wrote:  I wonder how many more platforms will follow onlyfans route and make the same change?

All those who to stay in business have to abide by the law

unless you are Amazon or facebook etc etc

(02-07-2020 10:26 )ShandyHand Wrote:  Looks like all the cost has been passed directly on to the customer as part of every single transaction.

Only if creators decide to keep their prices the same. They can reduce their prices if they choose to, in order that the subscriber doesn't face any price increase. Since some of them are concerned at possibly losing subscribers they may consider doing this, but either way it's their choice to make.