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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.

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