VAT on Digital Platforms

^ Yes and OF have abdicated their responsibility by shifting that choice too. How many years is this an admittance they've been doing it wrong for?

If they've been doing it wrong for years, then they're fucked. Because HMRC will want all the back money.

If I was to speculate (which is the second most important reason we're all here ) I'd say HMRC's interpretation of the business has changed. Chances are they were paying VAT on their cut from the girls and calling it a service provided.
If they're now charging VAT on the content then I think HMRC must have deemed that they've bought the content from the girls and are selling it on.

If it's been applied across the board then there's no way they're collecting it on behalf of the girls (as I saw stated in one news article) because I doubt the majority of girls are VAT registered themselves.

It won't make any difference to the % the girls get, but it may hit them if the number of subscribers drops.

Regarding tips, I doubt their payment system can differentiate between tips and purchases at this stage.

it depends if HMRC will pursue them for the money that may be owed given they have made this change, but then it probably would allow HMRC to chase the girls as they could be classed as OF 'employees' in a sense

I'm sure i made valid point about tips in my last post on this thread

Adultwork started doing if in 2015

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

(02-07-2020 12:50 )The Silent Majority Wrote:  If they're now charging VAT on the content then I think HMRC must have deemed that they've bought the content from the girls and are selling it on.

It wouldn't be necessary for HMRC to deem such a thing, as the girls selling their content through OnlyFans makes OnlyFans liable for the VAT anyway.

VAt rules require anyone operating a digital platform which third-parties sell through to treat the sales as their own and account for VAT on those sales.

Incidentally, Clips4Sale started charging VAT in February, and like OnlyFans there was no prior warning of the change, just a notice the same as OnlyFans saying that starting from today prices will automatically have VAT added.

(02-07-2020 22:36 )marlowe Wrote:  

(02-07-2020 12:50 )The Silent Majority Wrote:  If they're now charging VAT on the content then I think HMRC must have deemed that they've bought the content from the girls and are selling it on.

VAt rules require anyone operating a digital platform which third-parties sell through to treat the sales as their own and account for VAT on those sales.

That's not materially different to what i said. I used the word 'deemed' for a reason. The reason being that they wouldn't literally be buying the content.

(02-07-2020 22:36 )marlowe Wrote:  Incidentally, Clips4Sale started charging VAT

PornHub too.

I see the educated folk have escaped from Admiral Decker's wardrobe again.

(02-07-2020 21:37 )sedsa Wrote:  Adultwork started doing if in 2015

That's when the law changed.

So what does the VAT change mean for buyers? more money to pay when purchasing subscriptions and extra content I assume? How do we pay that then? Sorry if im asking stupid question but I dont really understand it all.