Following an initial opinion last September, the UK tribunal’s request for a review of the rules at the European court has endorsed HMRC’s position on VAT liability for the social media platform.

HMRC sent Fenix International, the operator of OnlyFans, VAT assessments for £11m in VAT due for a period between 2017 and 2020, taking the view that Fenix had to be deemed to be acting in its own name and consequently had to pay VAT on all of the sum received from a fan and not only on the 20% of that sum which it levied by way of remuneration.

Fenix levies 20% on any sum paid to a creator to whom it charges the corresponding amount. On the sum which it levies in this way, Fenix applies VAT at a rate of 20%, which appears on the invoices which it issues.