- OnlyFans has more than 100 million users worldwide. The business flourished with the pandemic and has become the most successful platform in the last two years.
- Of the total that each OnlyFans creator charges their subscribers, they must pay 20% as a fee to the platform.
- Until now, OnlyFans pays taxes (VAT) on that 20%, but the UK says you have to pay on the total.
OnlyFans is about to break the record of 100 million users, but these are speculations, because little is publicly known about the platform, which is sure has had exponential growth.
What there is no doubt about is that we are facing an unprecedented phenomenon.
OnlyFans has meant the “uberization” of the audiovisual content production industry, cutting out the middleman and allowing people to monetize audiences through paid subscriptions or paid downloads of self-created content.
The platform connects creators with subscribers directly. They are fans willing to pay for videos, photos, exercise routines, music or diets, all exclusive and only accessible to them. Much of that content is erotic and adult-only content.
The platform takes 20 percent of the revenue generated. It seems like a high percentage, it’s true, but you have to take into account in the audiovisual industry, currently, many artists receive barely 30 percent of what they generate.
OnlyFans with tax problems
The novelty this Thursday, September 15, comes from the United Kingdom, where the online platform is evading taxes, according to the authorities of that country.
Apparently, you are paying UK value added tax (VAT) on a sum that is not the full amount paid by subscribers, something that is outside the UK and European Union tax rules for online platforms.
Founded in 2016, OnlyFans flourished during the most restrictive stage of the covid pandemic as a way for content creators to earn money by selling content directly to paying subscribers. Reuters.
The dispute has been going on for months. Faced with the government’s demand, the company behind OnlyFans, Phoenix Internationalfiled a complaint in a UK court after UK tax authorities ordered it to pay VAT on all money paid by fans and not just the 20 percent creators pay the platform.
The UK court asked the advice of the Court of Justice of the European Union, the highest in the European region. This was so because the proposal was made before the UK withdrew from the European Union in 2020.
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