VAT on Digital Platforms

(05-07-2020 15:44 )The Silent Majority Wrote:  Is it possible that the girls selling stuff by DM could say "send me a £10 tip (say) and I'll send you the vid 'for free' "?

Because if it's open to that sort of abuse they may have decided that there has to be VAT on the tips.

Yes that's what I had in mind, that if there was no VAT on tips it would be something which was easy to take advantage of. I can't help thinking that evading VAT in the way that you describe would become routine.

(05-07-2020 23:42 )aaron Wrote:  

(05-07-2020 15:44 )The Silent Majority Wrote:  Is it possible that the girls selling stuff by DM could say "send me a £10 tip (say) and I'll send you the vid 'for free' "?

Because if it's open to that sort of abuse they may have decided that there has to be VAT on the tips.

Yes that's what I had in mind, that if there was no VAT on tips it would be something which was easy to take advantage of. I can't help thinking that evading VAT in the way that you describe would become routine.

Its up to the girls though as they will register with there accountant/ hmrc for VAT. They dont need OFans doing it for them. How can you charge VAT when someone doesn't reach the threshold and if someone tips for kindness that isn't subject to VAT.

(05-07-2020 09:24 )FanofCamilla Wrote:  I've actually messaged admire me and asked how they handle the VAT, cause if 1 site needs to pay it then surely they all do.

But I wonder if some are just absorbing it & paying it from turnover rather than passing it to directly to the customer.

please let us know the answer...very badly handled by OF. be interesting to see if others had already allowed for it.

https://news.sky.com/story/onlyfans-coul...s-12022345

in the article "One rival company which did charge VAT has complained that it was operating at a disadvantage to OnlyFans during this period.

Emilie Moore, of SoSpoilt, told Sky News: "Unlike OnlyFans that waited four years to be HMRC compliant, we designed automatic VAT handling into our platform from the outset to ensure all our creators did not have to worry about potential VAT issues.

"We allow VAT registered creators to submit VAT invoices for payment, and for all others we collect and remit any applicable VAT on content sales."


Isnt So spoilt Xpanded

Maybe i was right about channels dobbing them in afterall i meant it as a joke

I just saw that article, explains the sudden unexpected extra charges on all purchases. Could be there deathnail as I would imagine more than 3 years worth of VAT has got to be a hell of a lot of money considering how much money they've earned in that time.

(05-07-2020 09:51 )The Silent Majority Wrote:  Regarding the lack of notice, they maybe didn't have a lot of choice if the HMRC clampdown came with immediate effect.

Yes indeed. In fact I'm sure they had no choice at all, as HMRC would have required them to start charging VAT immediately.

HMRC wouldn't have said you ought to be charging VAT and you can start at some date in the future when it suits you to do so.

Three years' back tax recovery templating is standard procedure for HMRC in such situations. It's what they did for example to the BBC performers who got paid as independent contractors and were then hit by the IR35 stuff. It will be a lot of money and a potential existential threat to OF and any babes that are hit with a big bill.

I have also thought that HMRC will go after the Amazon wish lists stuff soon, as that is a taxable benefit in kind.

HMRC methodically go through the various sectors starting with the biggest, lowest hanging fruit first them work their way down the food chain. IR35 started with IT contractors and now has worked it's way through private drs, BBC 'stars' and now adult stars and their employers/platforms.

(06-07-2020 21:31 )tony confederate Wrote:  HMRC would have required them to start charging VAT immediately.

For those moaning about the lack of notice, it's probably worth adding that other platforms which suddenly started started charging VAT didn't provide any notice of it either. I'm thinking of Adultwork, ManyVids, Patreon and most recently Clips4Sale. Like OnlyFans they simply announced it on the day.

Quite a few UK/EU "creators" complaining on Twitter that payouts are frozen and they're seeing a zero balance on their accounts.

If HMRC clobber OF with a bill for 3 years of unpaid VAT + possible penalties this could get very messy very quickly.

(06-07-2020 23:29 )marlowe Wrote:  

(06-07-2020 21:31 )tony confederate Wrote:  HMRC would have required them to start charging VAT immediately.

For those moaning about the lack of notice, it's probably worth adding that other platforms which suddenly started started charging VAT didn't provide any notice of it either. I'm thinking of Adultwork, ManyVids, Patreon and most recently Clips4Sale. Like OnlyFans they simply announced it on the day.

And we all moaned about that at the time