industry How VAT works on OnlyFans

Value added tax (VAT) is a tax that is charged in many countries around the world and generally targets consumer spending. Most relevant is the VAT in the context of OnlyFans for fans from countries in the European Union, which harmonised the charging of VAT between its members.

VAT is not only applicable for fans but can also play a role for payouts from OnlyFans to creators, primarily for those from the United Kingdom.

VAT on payments from fans

Chances are a fan has complained about it or you saw it when trying to subscribe to a fellow creator but as required for compliance OnlyFans will charge fans the prevailing VAT rate in their country on top of your subscription price. For a fan from Germany for example, which has a VAT of 19%, your subscription will be increased by 19%. Fortunately OnlyFans communicates this clearly to the fan and given that most people would be used to paying their VAT on literally everything they buy it shouldn't cause a lot of issues.

It's also important to note that OnlyFans does not keep this money, as all VAT payments will be directed to the respective country for which the tax was charged. A similar system is in place for US states that charge sales tax, which will also be added to your subscription price.

VAT payout for creators (UK only)

Many who have run a business in a VAT country before know that companies will usually charge and receive VAT as well, but OnlyFans is not paying out VAT to anyone outside of the UK. That is due to a mechanism called "reverse charge" in which to simplify cross border payments the VAT will not be paid by OnlyFans and you as the beneficiary won't have to pay VAT on the received amount in your country.

An exception to this are creators from the UK, as OnlyFans is also registered in the United Kingdom it will pay out VAT with every invoice to UK creators that have VAT registration. If you need to apply for VAT registration depends on a few criteria, which you best discuss with your tax advisor. If however you are VAT registered you will need to provide your VAT number to OnlyFans in order to receive payouts with VAT.