What is VAT?
Value Added Tax (VAT) is a consumption tax levied on goods and services in many countries, including the UK. It is a tax on the value added at each stage of the production and distribution chain. In simpler terms, it is the tax you pay on the final selling price of a product or service.
Does VAT apply to me as a Creator on Fanvue?
Whether VAT applies to you depends on several factors, including your location, your earnings, and whether you have registered for VAT. Hereās what you need to know:
Location: VAT applies to your payouts if you are based in a VAT-registered country. The rate of VAT and whether the Reverse Charge Mechanism applies depend on the country where you're registered.
As a creator, your monthly payout invoice is your sales invoice.Ā If you have entered your VAT number and confirmed your business on Fanvue, VAT is automatically added to your withdrawals at the applicable rate.
If you are VATāregistered and have added & verified your VAT number under Settings ā Tax:
Your VAT/GST number appears on every payout invoice.
The invoice shows the VAT amount accounted for on your behalf, which you can declare as output tax and potentially offset against input tax on business expenses (depending on local rules).
If you are not VATāregistered:
The payout invoice will state āVAT not applicable.ā
You canāt reclaim VAT on costs until you register.
Note: Whether or not youāre registered does not affect the price fans pay - Fanvue already applies the correct VAT at checkout. Adding your VAT number simply changes how the VAT is applied on your payout invoices and how you handle it in your own bookkeeping.
Need Assistance? If you have questions or need further assistance with VAT, please contact Fanvue support. Weāre here to help!