Fanvue handles VAT based on the information provided by creators and the location of the fans. Here’s a breakdown of how VAT is managed:
1. Fan Location:
VAT is applicable on transactions when the fan is based in a VAT registered country.
2. Creator's VAT Number:
If the Creator Has Provided a VAT Number:
VAT is charged on both Fanvue's fee and the creator's earnings.
Example: For a $100 transaction:
Fanvue’s fee (20%) = $20
Creator’s earnings (80%) = $80
VAT on Fanvue’s fee (20% of $20) = $4
VAT on creator’s earnings (20% of $80) = $16
Total VAT = $20
Transaction total = $120
If the Creator Has Not Provided a VAT Number:
It is assumed the creator is not VAT registered, so VAT is only charged on Fanvue’s fee portion.
Example: For a $100 transaction:
Fanvue’s fee (20%) = $20
Creator’s earnings (80%) = $80
VAT on Fanvue’s fee (20% of $20) = $4
Total VAT = $4
Transaction total = $104
3. Responsibility for VAT:
Creators who haven’t provided their VAT number need to pay the missed VAT from their profits if they are VAT registered but didn’t disclose this information.
Need Assistance? If you have questions or need further assistance with VAT, please contact Fanvue support. We’re here to help!