Hot off the press is the following notice from Adult Work, one of the “big boys” in the adult entertainment world. It was received via email by each and every one of their performers/vendors and has caused shockwaves throughout the industry. Here it is in full:

” Q: How does this affect consumers of services distributed by the
AdultWork.com Platform?
A: As of Thursday 1 October 2015, VAT will be applied to digital products and e-services that members offering services sell to any customers whom consume their services within the EU, via the AdultWork.com Platform.

The rate of VAT charged will vary depending on where in the EU the service is consumed from.

The services include, but are not limited to, the following:
Private Galleries, Webcam Bookings, Phone Chat Bookings, DirectCam, DirectIM, DirectChat, Movie Clips, Rental Movies and Erotica.

 

 Q: Why is it up to the AdultWork.com Platform to apply the correct VAT rates and collect the VAT on behalf of its members?
A: 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.  Each would be required to register for VAT MOSS (VAT Mini One Stop Shop) and to meet necessary compliance criteria and associated increased administration costs.  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.

The benefit therefore is that for the majority of members there will be no need to register for VAT, submit quarterly reports or manage the handling of funds that would ultimately need to be sent elsewhere.  This major upgrade to the AdultWork.com Platform removes these burdens from its members whilst allowing them to remain compliant.

 

Q: How does this affect those whom receive AdultWork.com Platform’s own services?
A: As a provider of e-services itself, to you its customers the Platform has to charge VAT in accordance with current EU law for the e-services that it supplies.

 

Q: What about things paid for in advance, are recurring or pay later?
A: Things that have been paid for in advance, e.g. Featuring or Available Today have already been charged.  The transactions are completed.

In the interests of safeguarding your business the price of recurring items such as ‘Phone Number Display’ and pay later items such as ‘Local Escorts’ will change automatically to include VAT. If your country of consumption has been determined these charges will be applied automatically on the usual recurring basis or dates you have specified. If you are dissatisfied with this arrangement or the VAT-inclusive prices please visit your Edit Profile Page, Local Escorts Page or the relevant subscription page (Detailed Emails, Telephone Directory or Logged in Search) and make the necessary changes.

 

Q: Why now?
A: The ownership of the AdultWork.com Platform has changed and this statement is fact and defines the AdultWork.com Platform position going forward from Thursday 1 October 2015.

AdultWork.com are committed to ensuring their members remain compliant. Members selling content on other websites should satisfy themselves that those websites are also meeting their EU VAT obligations and not putting their users at risk of future financial liabilities or worse.”

 

Yowsers, that’s a serious chunk of change for both performers and users alike… but there is a solution…

 

Make sure you’re watching the live stream of ClipsFataleLive at 10.30pm on the 16th October for the big reveal.