OnlyF, an online platform known for its adult content, should pay UK value-added tax (VAT) on the full amount subscribers pay to content creators, not just a 20% cut, EU legal counsel said on Thursday.
OnlyF was founded in 2016 and has over 100 million users. During the pandemic, OnlyF has flourished as a way for developers to make money by selling content directly to paying subscribers.
OnlyF operator Fenix sued in UK courts after UK tax authorities ordered it to pay VAT on all payments made by fans, not just the 20% VAT it receives from creators for services such as collection and distribution fees .
The court then sought advice from Europe’s highest Court of Justice of the European Union (ECJ). The application was made before the UK leaves the EU in 2020.