this link covers the digital VAT law https://www.gov.uk/government/public...vate-consumers
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this link covers the digital VAT law https://www.gov.uk/government/public...vate-consumers
So since I'm neither a UK/EU business/resident can I get all my VAT collected from my earnings refunded? Sure, let the UK custies pay.
As far as I can tell from the vague information that Adultwork has given us all, Only EU resident have to pay the VAT on content. If you are outside the EU then customers will not have to pay any VAT.
The problem for anyone outside of the EU, is that all EU residents will have to pay VAT. So VAT will be added to your fee's for movie clips, webcam etc for any customers that are resident within the EU. On adultwork most of the customers are from the UK, so you will find that your fee's will go up by 20%.
The customers are also paying VAT to buy the credits in the beginning. This means that customers inside and outside of the EU are now expected to pay an extra 40% for your services. I very much doubt they will stick around long and end up going else where.
Unless of course you take the 20% VAT hit and lower your fee's. Also, all performers (regardless of where you are) will have to pay VAT when you withdraw your credits no matter where you are just as I have to pay tax on anything I have bought that is in the US.
I think you will find that most of us that cam on adultwork charge decent prices for our shows. I charge 1.65 credits for group and 2.10 credits for private which translates to £1.65 ($2.42) and £2.10 ($3.18) at an approximate 65% payout on cam and 70% payout for Private gallery, movie clips etc at the moment. (before all of this crappy VAT stuff)
Your thinking about the romanians and bulgarians and so forth that charge rediculously low prices and, believe me, it pisses us off too that we are being undercut so much.
I'v been on Adultwork for quite some years now and now it's looking like an end to an era for me. The site will go down the pan.
xxx
Starting to think along the same lines... All we need now is AW to announce that all directcam will be free just like on sm
So, the site has changed, anyone notice a difference? I'm not in the EU and it says I'm vat exempt and I went to my credit transfer page and the fee is still 30%
My prices have now changed...rip AW :P
My rates have risen as expected
If your customer is EU they will pay bat regardless of where you are
For DirectIM, Mine were, 75p group and 95p pvt. They are now 90p group and 1.19 pvt.
Thanks for that nadia. I just wanted to see how AW VAT charges were being applied.
So for Non-EU members, they have to worry about their EU customers paying the extra 40% overall (Paying VAT on buying credits, and services aswell) and EU members have to worry about the customers extra expense plus the VAT on adultworks fee.
I now wish that Adultworks customer base wasn't made up mainly of uk customers. Eeerg.
x
i was already charging high at 2.99/3.49. After the VAT has been implemented my rates are showing as 3.59/4.19. I will now pay an extra 6% on my income, and am i right in thinking the CUSTOMER will already have paid 20% extra when buying his credits. I CANNOT for the life of me work all this out! I have a high % in paid chat per hour i am online and nearly all of that is private, i can't stand group and I'm terrible at it! I really can't work out if I need to lower, or raise my rates in order to keep my privates majority while not losing out more than 20p off my take home per minute rate. Ugh, my head hurts.
As far as I can tell, since the change has happenned a few hours ago, the customers are not being charges VAT when they purchase credits. I have gone through the process of buying credits up until the point where you have to put your credit card details in and no VAT showed then. The only way for my to confirm this is to ask one of my regulars to go through the process and tell me if they are charged VAT though.
I know it is looking bad at them moment but give it a few days with your pricing as it is now and see if you still make the same amount. If you don't then you will have to look at other options.
You could absorbe all or some of the VAT charges from the customers or you could look at split camming. Personally I'm looking into split camming with indie, but I'v only been looking at this since this afternoon so nothing decided.
If your in the EU then you will also have to pay VAT on adultworks withdrawl fee which works out at £6 per £100 earnt.
Do you do vanilla camming or fetish/domme?
If you do vanilla camming then group is the way to go on adultwork. I used to do vanilla and group was my real earner. I'd only do a standered show with no requests (unless it was a regular or a big spender asking for smaller requests)
All in all, at the moment, adultwork is a waiting game to see how things turn out. You may need to lower your pricing and you may not. See how you do and then you will see if you need to change pricing, add more eggs or/and split cam.
I still don't know how adultwork is working all this out and make sure that you check your earnings. There is a lady on another forum whos earnings for her shows are not working out on the new rate shown with VAT nor her old rate that didn't include VAT. So keep an eye on it all.
xxx
They seem to have answered above here:
Why is it up to the AdultWork.com Platform to apply the correct VAT rates and collect the VAT on behalf of its members?
Under current legislation the AdultWork.com Platform is deemed to be a Portal through which third parties sell their digital products and e-services to end consumers. As much as it might seem desirable to avoid the responsibility, the Platform does not meet the mitigating criteria that would exempt it. If the Platform did meet the mitigating criteria, the burden of responsibility would actually be incumbent on each individual member. We feel this is unrealistic for each AdultWork.com member and as has always been the objective of AdultWork.com, the Platform should provide the tools to allow individuals and businesses to conduct their online businesses with ease and simplified administration - 24 hours a day, 7 days a week.
Another question...are they going to be the ones to collect the VAT from our earnings or is it all going to be our income and it is up to us to deal with if we have reached the VAT threshold? Will have to see how it looks on the next transfer.
I've actually had to lower my prices :( I was at 2.5 for grp and 4 for pvt so I can't see many of my regs paying near on 5 credits. I can't see this being a good thing for AW.
If none of us lower our prices, they will simply have to adjust to paying the VAT. Lowering our prices by 20%, plus paying 20% on the admin fee as well is a huge hit to our earnings. I wonder if Daily Pay have to charge VAT on their services now too...
The site was going down before this.I think we all had a significant drop in earnings over the last years.I charge 2 a min and I'm not bothered for the extra 20% they wil add to my rates.I don't think the good customers will be either but the cheap ones will be,obviously.I've been on aw for 8 years and I've seen it going down.They say the ownership changed,well maybe they will bring some traffic in,maybe there will be good changes as well.The traffic quality is what is affecting us and not a 20% VAT ,look at SM where customers pay VAT, models are charging high rates and still, they pay.And we worry for an extra 20% they will have to pay now?If they don't like it there is free porn all over the net,cam interraction shouldn't be an experiece they can get for cheap.
And yes, I was reffering to EE studios,none of these girls we see charging under 1 a min is an independent,they all studios and owners decide their rates. As an eastern myself I found that affecting me big time because customers are the way we educate them.If I had one dollar in my account for how many times I've been told I charge too much for an eastern I'd be rich.So I have a personal reason to say "let them pay".
Pretty high, actually - but not soon. This has been going on since the start of 2015; when it came in, there was an uproar from micro-businesses all over the country. The main resistance has been coming from indy writers, people who sell knitting patterns etc. The legislators had *no idea* how many micro-businesses would be hit. (I knew all of this from my indy writing woes, but assumed live shows didn't fall under the VATMOSS umbrella.)
Here's a blog by the fantasy writer Juliet McKenna who's been fighting the good fight.
http://www.julietemckenna.com/?cat=48
Latest, from yesterday:
"The Telegraph (and other papers) have been triumphantly proclaiming victory in the VATMOSS fight. The EU has conceded that the legislation needs revising to include a threshold. Hurrah! ... up to a point ...
But we still won’t see any long-term relief for the thousands upon thousands of businesses hit by this for another two years – maybe eighteen months at very, very best. Which means we still need vital interim suspension or some other easement to stop the ongoing damage being done to the grassroots digital economy."
im sure theres been an influx of cheapos today. Most in school uniform and one boasting to be pregnant and doing smoking shows. Feeling a bit depressed this morning
I've switched to Streamate for a bit. Seem to be doing a bit better on there this morning. The news about the VAT has so many people feeling deflated...