Brussels /
OnlyFans, one internet platform famous for its adult content, you have to pay value added tax (VAT) in great Britain on the total amount paid by customer and not just the amount that is deducted, according to the rules EU about him VAT for online platforms, said an EU court adviser.
Found in 2016 and with more than 100 million users, OnlyFans thrived during the pandemic as a way for content creators to make money selling content directly to paying customers.
operator of OnlyFans, Fenixbring the complaint to court great Britain after the British tax authorities ordered him to pay VAT about all the money paid by followers and not just the 20 percent deducted amount paid to content creators.
The court then sought advice from European Union Court (CJEU)highest of Europe. The request was made beforehand great Britain will withdraw from European Union in 2020.
Attorney General CJEUAthanasios Rantos, said the court must confirm that the VAT rules apply to OnlyFans.
“The provisions of the implementing regulations of the VAT Instructions which stipulates that internet intermediation platforms are, in principle, obligated to pay VAT legal,” he said with a non-binding opinion.
“Relevant provisions of VAT Instructions does not contain any limitation to its scope or scope. As a result, no service category is excluded from the material scope of the provision,” he said.
The CJEU, which followed this advice in four out of five cases, will rule in the coming months.
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