There has been no abuse of power to the detriment of OnlyFans. The Court of Justice of the European Union found the entertainment platform wrong, which connects ‘creators’ with fans willing to pay for access to confidential content. The dispute began a few years ago in the United Kingdom, where authorities carried out checks on VAT payment by Fenix International, a British company that manages the social platform that was founded in 2016.
The UK tax and customs administration has notified Fenix of the assessment notices regarding the VAT payable for the period between 2017-2020, considering that Fenix is acting on its own behalf and therefore has to pay. VAT on the entire amount received from paying fans, not just 20% of this amount Fenix took as fees.
The company therefore appealed to challenge the validity of the legal basis of the assessment notices, namely an implementing regulation published by the Council of the EU, which aims to clarify the European VAT directive. The British judge called upon to rule on the Fenix/OnlyFans case therefore put a preliminary question to the EU Court of Justice before the end of the transitional period following Brexit. Therefore, the EU Court has the power to decide on the dispute.
The Court today decided that, by accepting the controversial provision of the implementing regulation, the European Council limited itself to determining the VAT directive without integrating or amending it. Therefore, the European Council did not go beyond its powers to state that the administrator of a platform such as Only Fans should be considered as the so-called provider of services provided for the purpose of paying VAT. The examination of the question referred to for a preliminary ruling therefore did not reveal any factors which could cast doubt on the validity of the contested provision of the implementing regulation.
Source: Today IT
Karen Clayton is a seasoned journalist and author at The Nation Update, with a focus on world news and current events. She has a background in international relations, which gives her a deep understanding of the political, economic and social factors that shape the global landscape. She writes about a wide range of topics, including conflicts, political upheavals, and economic trends, as well as humanitarian crisis and human rights issues.
