A little bit of clarity for the new Adultwork VAT fee

[admin]

Hi all. I hope this helps some people.

As of the 1st of Nov 2020, all prices/services on AW has increased by 19-20% roughly. There are two sides to this VAT additional. Place of supply VAT and Place of consumption VAT.



For clients: You will notice all live services now also have the VAT charged, the rate for live services is based on "Place of supply VAT", which is AW's location of Cyprus, meaning 19% VAT. VAT was already added to movies, images etc since 2015, the difference is live content is now included, including phone chat bookings. See below for which service has which VAT applied to it.




For performers: Your clients may decrease based on the new rates, its inevitable, but there isnt much AW can do as its the law to charge VAT. Previously you may not of noticed VAT was already being added to your images and movies, this time around you will probably of noticed it on your live content though (directcam) as Im sure clients haven mentioned it. As of the 1st Nov the differences you will see is increased prices for display number (was 1 credits, now 1.19 credits), featuring, member of the day etc. 


Place of Consumption VAT
Place of Consumption VAT is applied to e-services:

• Movie Content
  
• Private Gallery Subscriptions
  
• Erotica Items
  

Place of Supply VAT
Place of Supply VAT is applied to all other services, this includes but is not limited to:

• DirectCam & DirectIM
  
• Phone Chat & DirectChat
  
• Enhanced Search facilities
  • Telephone Directory
    
  • Detailed Emails
    
  • Logged In Search
    

For performers inside a group, there seems to be a little confusion surrounding this as some groups have "VAT free" in their tags, this is playing with the truth a little fast and loose. ALL VAT charges are still in place with 1 sole exception, VAT on the admin fee. When they say VAT free they really mean there wont be any VAT charge on the admin fee.

For example OFF THE RECORD which have "VAT Free agency", they dont go into more detail on it but again, you are not VAT exempt while inside the group, the only difference is its not charged on the admin fee.

There is no way a group can remove the VAT on anything else.

Also be on the watch for notorious scam groups London Sapphires and London Gems advertising on social media VAT free in their groups. When they charge 50% to be in the group with no benefits, paying VAT is the least of your worries. They also of course cannot remove the VAT on anything just like the other groups, with the sole exception of the admin fee, in which you dont save anything as they keep it.

If looking to remove VAT on your admin fee do not feel any urgency, behind closed doors people who care about the community are planning on removing the increase on the AW admin fee for you, at no % increase to you.



AW has wrote extensive articles in relation to VAT here https://www.adultwork.com/dlgFAQsNew.asp...ionID=1820


At the time of writing I do believe all the above to be true and accurate. If any is not please feel free to let us know.