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Originally Posted by Tasty1
Always problems with VAT. What happens if a camgirl is outside of the EU, so the work is done outside the EU. Or do they work inside the EU, as private person or as company. Where is the customer from? If you sell to private customers you pay always the VAT in your country i think. Dutch companies also went to court for years about that when they had to pay millions.
The producers/camgirls have to pay VAT themselves in the country they work from in most cases. In the example above OF pays 20% VAT in the UK on the 20 euro they make.
But all depends, if they mention on the site / bill they collect 20% VAT, than they must pay that 20% VAT on the whole amount.
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As far as I know, this is a digital service.
- On such services, it's the location of the customer that matters for EU VAT %
- It doesn't matter where the seller is. In theory an US or Indian service provider also has to register for VAT in at least one EU country, collect VAT from all EU customers. (Different % depending on the customer's EU country.)
The non-EU service provider will register & pay VAT in a single EU country and provide all the data there, with the VAT amount breakdown by the customers' country (for the EU customers). At the end of the year EU countries distribute these taxes between themselves based on the data.
https://europa.eu/youreurope/busines...e/index_en.htm
It's a different matter that EU can't really enforce this rule on an Indian company. But unfortunately for OnlyFans, they are registered in an EU country.
That said many big U.S. companies do collect EU VAT now, for example hosting companies, domain registrars, etc.
Now whether the platform (OnlyFans) is the service provider, or if it's a split thing between the company & the model, and each party is liable for reporting VAT for their own share, that's a whole lot more interesting.
In theory the models could be VAT exempt entrepreneurs/companies in their country, then they don't have to charge VAT for their part. But unless OnlyFans was adding this information/split to their receipts from the beginning, and informing the girls that they are responsible for reporting and paying VAT on all earnings and giving them all the data so that they're even ABLE to do that (earnings breakdown by country every month), I doubt they'll be able to convince the tax authorities that this has been their setup all along.