What does this mean for me?

If you are a Creator resident outside of the EU and UK, ContentFans 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, ContentFans 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 ContentFans 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 ContentFans 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.

See image below for a detailed example of how VAT will be handled for Creators who are not registered for VAT