VAT on Digital Platforms

(03-07-2020 10:54 )babefan2012 Wrote:  So what does the VAT change mean for buyers?

If creators decide to keep their prices the same, the VAT change would simply mean that the buyer pays 20% more.

Ah ok. They just don't make it very clear.

Or to put it is simple terms, I got a ppv video priced at $10, so with VAT it actually cost $12.

(03-07-2020 11:06 )babefan2012 Wrote:  Ah ok. They just don't make it very clear.

An example, I’m on Impact Wrestling star Jordynne Grace’s patreon on the lowest tier which is $5 a month (£4) but patreon charges the U.K. vat of 20% on that so I actually pay $6 a month (around £4.50)

Thanks. Understood now.

(03-07-2020 10:22 )aaron Wrote:  

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

That's when the law changed.

I think they started charging VAT in about October that year, but the new law was effective from 1 January 2015, so Adultwork should have been charging VAT before they actually did.

I read on gov.uk somewhere that "a tip freely given" isnt subject to VAT, but all thr Gov examples related to restaurants, hotels etc They havent brought it up to date for a digital world.

The message they sent said "collecting it on behalf of the creators", they made it sound like they were doing the girls a favour so to speak, but i doubt the girls hit the vat threshold. Shouldn't onlyfans be paying vat on their 20% cut and leave the rest to the girls?

Also, how are they working out what country you're in, is it from where the credit/debit card is registered? Or from your IP (wherein a VPN could be used - probaly illegally use)?

^ The credit card number identifies the country it was issued in.

(04-07-2020 11:18 )SecretAgent Wrote:  ^ The credit card number identifies the country it was issued in.

As well as you have to give them your address and contact details to check with the credit card for security so they know you are from the UK

Are tips vat applicable?