Answer to question
What does this mean for me?

If you are a Creator resident outside of the EU and UK, OnlyBabes will collect the required VAT on sales to the UK/EU based Fans and pass this directly on to the relevant tax authorities. There is nothing else to do at this time. However, we recommend you seek professional advice to ensure you are compliant with your local rules based on your individual circumstances.

If you are a Creator resident in the EU, OnlyBabes will also collect the required VAT on sales to the UK/EU based Fans and pass this directly on to the relevant tax authorities. There is nothing else to do at this time. However, we recommend you seek professional advice to ensure you are compliant with your local rules based on your individual circumstances.

And if you are registered for EU VAT - for your purposes of VAT, please state that you sell your content to OnlyBabes and there is zero (0%) VAT on this. You should tax your income taking it into consideration.

If you are a Creator resident in the UK, it depends on whether or not you are registered for VAT.

The following guidance from HMRC explains when you are required to register for VAT https://www.gov.uk/vat-registration/when-to-register. For clarity, your Earnings (80% of Fans payment) are classed as “VAT Taxable Turnover” as referred to in the guidance article.

If your earnings do not exceed the VAT Threshold explained in the guidance article, and you are not registered for VAT, then OnlyBabes will collect the required VAT on the sales to the UK/EU based Fans and directly pass on to the relevant tax authorities. We recommend seeking professional advice to ensure you are compliant with your local rules based on your individual circumstances.

If you are resident in the UK and registered for VAT, we ask that you please provide us with your valid VAT number in the Bank (to earn) section at  [email protected] and confirm acceptance of the self-billing agreement.

We will be carrying out additional verification procedures before processing the VAT payments. In order to receive the payment, creators will need to email proof of their VAT filing to  [email protected]. This will be checked to ensure the VAT element on OnlyBabes Earnings is being declared to HMRC. Once checked, it will be possible to raise VAT invoices.

You will be deemed to be charging OnlyBabes your Earnings figure (80% of Fans payment) + VAT at 20%. This VAT element that is deemed to be added to your earnings will be paid to you monthly on a separate payment outside of your regular earnings, once internal verification procedures are completed. There will be a downloadable VAT statement supporting this amount which you can use to complete your VAT return and remit the VAT amount (which is paid to you by OnlyBabes each month) directly to HMRC.

According to the provided invoices, our Accounting department will send you the corresponding amounts to remit the VAT.

See below for a detailed example of how VAT will be handled for UK VAT registered Creators who have provided a valid VAT number. This results in all required VAT being paid on Fan payments to HMRC whilst protecting the 80/20 earning model.