OnlyFans could be on the hook for nearly 4 years of UK/EU 20% Value-Added Tax payments
Hugely popular fan club platform OnlyFans could find itself owing nearly 4 years of back taxes and penalties to Her Majesty’s Revenue and Customs (HMRC), the UK tax collector. OnlyFans is owned by Fenix International Limited, a company that is both registered and based in the UK. It appears that OnlyFans decided that they were an “agent”, which meant they were not responsible for collecting the 20% VAT (Value-Added Tax) for the UK and EU, while HMRC’s own review indicates that OnlyFans most likely does not fit that category, and should have been collecting and remitting VAT all along.
Although the review is not yet complete, and OnlyFans has not yet been given a figure for the unpaid taxes plus additional interest, fees, and penalties (which could be up to double the taxes originally owed if HMRC determines that OnlyFans was careless or intentionally filed inaccurate returns), it is likely that OnlyFans will be hit with a big bill in the near future. OnlyFans has already changed the way it does business–potential subscribers from the UK and EU are shown subscription fees for performers that have an additional 20% added. This change was brought in without any communication with performers, which is the standard OnlyFans approach when it comes to site and policy updates and changes.
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