AdultWork now charging VAT?

[copycat]

I hear AdultWork is going to start charging VAT.

What's the crack? Charging punters or service providers only? Or both?!

[daviemac]

I hear AdultWork is going to start charging VAT.

What's the crack? Charging punters or service providers only? Or both?!

No idea I don't pay for anything on AW so don't know what you mean by 'charging punters'   

[copycat]

No idea I don't pay for anything on AW so don't know what you mean by 'charging punters'   

To buy credits for private galleries, reverse bookings or webcam bookings.

[vw]

To buy credits for private galleries, reverse bookings or webcam bookings.

So they should every other company has to !

[raylondoner]

On the one hand you could say they are providing a service, so this is within the scope of VAT. However, based on the fact that they are offshore, is there a liability to charge VAT in the jurisdiction of their domicile?

If it's UK VAT it sounds like a 20% increase in AW profits since I don't see HMRC getting a sniff!

Happy, as always, to be corrected without taking offence! 

[NEGaz]

Think from what I've read from some girls on Twitter it's the girls who are going to pay it. So it only means one thing price increases

[vw]

Think from what I've read from some girls on Twitter it's the girls who are going to pay it. So it only means one thing price increases

20% increase on zero for me, not bad, may help to pay for some of our new guests.

[NEGaz]

I don't know the full in's and out's of it but if it's just cam girls or everyone then I can see escort prices cam prices etc rising

[vw]

I don't know the full in's and out's of it but if it's just cam girls or everyone then I can see escort prices cam prices etc rising

Adultwork don't collect escort fees just a small fee for available today light and phone number listing,  So maybe an extra £1 per day.

[raylondoner]

Adultwork don't collect escort fees just a small fee for available today light and phone number listing,  So maybe an extra £1 per day.

Not so small actually, green is £5 per day and phone £1 per day, multiplied by thousands

[daviemac]

If it works the same way as other service providers like auctions (not online) they can only charge vat on their commission not the whole amount. You can't charge vat on someone else's behalf. Plus you'd have to get a proper VAT receipt. 

[hungrypunt]

Its possible that they are not adding anything extra, all online businesses in the eu (UK at least) must now to comply with regs show prices of services incl and excluding vat at point of sale of the online presence. Say if they have been showing as Incl vat total, so possibly now are about to show £10 as

£8.00 + tax of £2.00

All assuming of course they arnt a buch of "T***s"

[Silver Birch]

I hear AdultWork is going to start charging VAT.

Or is that just a rumour started by Jeremy Corbyn?

[G.Raff]

I'd be curious to see what will happen if/when AW decides to pocket WGs credits on the grounds of a breach of T&S (as they have been reported to have done many times) - Technically they have to refund the VAT element at the very least.

[Jimmyredcab]

So they should every other company has to !

Except UBER.       

[pong]

Are you guys seriously paying for pictures in private galleries?

[blackburnian]

Are you guys seriously paying for pictures in private galleries?

Got a way of getting them for free you would like to share ??

As much as I hate doing it £1 or so spent on a pg can save plenty of cash or wasted time when you knock on the door and a munter answers.


Bb

[Jimmyredcab]

Are you guys seriously paying for pictures in private galleries?

Yes, many times and it has SAVED me hundreds of pounds over the years, I am not paying for porn, I am hoping for a face picture.     

[smiths]

Are you guys seriously paying for pictures in private galleries?

Not me, on principle I wouldn't give one penny in credits to those dodgy cunts who own A/W.

[smiths]

Adultwork don't collect escort fees just a small fee for available today light and phone number listing,  So maybe an extra £1 per day.

But A/W take a third of any credits accrued if a WG wants to cash them out, and in some cases as reported on here over the years apparently they decide to take all the accrued credits and delete the WGs profile. They make a lot of money thats for sure.

And that's not even mentioning what I think they do which is set up some PG scam profiles themselves, make some credits then delete the profile and do it again and again thus keeping all accrued credits. All very easy to do with very little chance of being sussed out for being the dodgy cunts they are.

[Spunky34]

Well, the reverse booking fee has suddenly changed to £2.40 from £2.

[Jimmyredcab]

Well, the reverse booking fee has suddenly changed to £2.40 from £2.

I wonder if the 20% will actually be passed on to HMRC -------------- I thought they were based in another country. 

[mh]

Except UBER.       

That allegation carries so much weight coming from a self-confessed tax evader. You couldn't make it up.
 

[sir_david]

I wonder if the 20% will actually be passed on to HMRC -------------- I thought they were based in another country. 

Cyprus.

[Silver Birch]

Well, the reverse booking fee has suddenly changed to £2.40 from £2.

I've wondered if it was worth giving AW 2 quid to try a reverse booking, but 40p to HMRC puts me right off 

[Spunky34]

The AW help page and its references to the VAT change are, unsurprisingly, little help.  They seem to be saying that they have to collect VAT on e-services on behalf of UK based service providers.  However, in order to do so I would have thought that AW itself would have to be VAT registered and would therefore need to quote a VAT registration number somewhere on site.  I have only looked very briefly but I can see no such number anywhere.

Happy to be corrected by anyone who knows better, but this just looks to me like a 20% revenue increase for AW .

[roxyts]

They charge vat before you cam with a girl and then us girls has to pay vat again. For example: I charge 1credit but they charges you 1,2. I have to pay 20% of that 1credit and 10% handling fee. Its an offshore company and they charge everyone vat?

They take 50% of what go's through AW.

How on earth can they just rob everyone like that? Is there someone that could explain this please. They use to make 10% and now going to make 50%

I can promise you they not going to pay vat?

Wish there was some rich guy out there that can start-up a better AW.

All the working girls would move over immediately.

[Silver Birch]

They charge vat before you cam with a girl and then us girls has to pay vat again. For example: I charge 1credit but they charges you 1,2. I have to pay 20% of that 1credit and 10% handling fee. Its an offshore company and they charge everyone vat?

They take 50% of what go's through AW.

How on earth can they just rob everyone like that? Is there someone that could explain this please. They use to make 10% and now going to make 50%

I can promise you they not going to pay vat?

Wish there was some rich guy out there that can start-up a better AW.

All the working girls would move over immediately.

On Jan 1st 2015 the VAT rules changed on the digital sale of online digital purchases. If this is the explanation, it has taken AW a long time to get up to speed.

I have no idea about the Adultwork tax/commission situation or actual percentages, but this is how VAT should work assuming AW were a legitimate UK company and they are taking 50% of wg credit as you claim.

Wg charges £1 per minute for webcam. AW takes 50p, pays 10p (20% VAT) to HMRC = 40p gross profit
Punter pays £2.40 for reverse booking. AW pays 40p (20% VAT) to HMRC = £2 gross profit
As a service industry they would be able to claim back very little VAT as they are not actually buying raw materials etc

Even if they are an offshore company (AW is operated by a company in Malta which falls under the EU VAT rules), a company cannot legally claim VAT is added to their prices, and keep it themselves. I am not suggesting this is what AW are doing, but if you can prove otherwise, why don't you report them? They wouldn't be the first provider in this industry to avoid paying tax!!! 

[roxyts]

Thank you for trying to explain it.

But you need to read, what I have said/asked first properly.

I charge 1 credit for a pic. and they will charge the client 1,2 credits.        Vat paid.           +,2 credits
+
I also pay ,2 credits from that 1 credit I only make ,8 before commission.  Vat paid again. +,2 credits
                                                                                                           Total paid     =   ,4
Can they charge vat double?
Are they a vat vendor for the UK?

You can report them, but they will laugh at you.                 

There is also a difference between vat and tax? Why are you going from vat to tax?       

Thank you for helping

[Silver Birch]

Thank you for trying to explain it.

But you need to read, what I have said/asked first properly.

I charge 1 credit for a pic. and they will charge the client 1,2 credits.        Vat paid.           +,2 credits 20p VAT paid here is on the income from CLIENT (punter) payment only, VAT has not been paid on turnover from wg charge
+
I also pay ,2 credits from that 1 credit I only make ,8 before commission.  Vat paid again. +,2 credits
                                                                                                           Total paid     =   ,4 The income from your side of the transaction would also be subject to VAT. I can only assume that the total £1 of credit appears on their turnover, (perhaps because it is held until you have accumulated x pounds), but I have to admit I do not fully understand what is going on there.
Can they charge vat double?
Are they a vat vendor for the UK? I purchase items from the EU for my business that I have to pay VAT at the rate in the suppliers country, but I do not know what AWs position is

You can report them, they will laugh at you.   I can assure you HMRC will not laugh at you for reporting a company not paying their VAT             

There is also a difference between vat and tax? Why are you going from vat to tax?    Apart from my final tongue in cheek comment, all my references were intended to relate to Value Added Tax.   

Thank you for helping

[Kristina Escort]

Adult works VAT is a a bit of a twat

I checked my credits this morning and what used to cost £1.00 for advertising my phone number now costs £1.20, however someone bought credits to my private gallery and I still only got my 3.00 not 3.60 with the VAT included  - not that I am moaning about not getting the vat element.  The point I making is AW have pocketed my 20p and the 60p from both sides of the transaction - are they just trying to boost their profits by 20%? 

Has adult work changed hands? Did I read that correctly?

K x

[James999]

Adult works VAT is a a bit of a twat

I checked my credits this morning and what used to cost £1.00 for advertising my phone number now costs £1.20, however someone bought credits to my private gallery and I still only got my 3.00 not 3.60 with the VAT included  - not that I am moaning about not getting the vat element.  The point I making is AW have pocketed my 20p and the 60p from both sides of the transaction - are they just trying to boost their profits by 20%? 

Has adult work changed hands? Did I read that correctly?

K x

Have you asked them for a VAT receipt so you can reclaim it against your own VAT registration?

[CatBBW]

Adult works VAT is a a bit of a twat

I checked my credits this morning and what used to cost £1.00 for advertising my phone number now costs £1.20, however someone bought credits to my private gallery and I still only got my 3.00 not 3.60 with the VAT included  - not that I am moaning about not getting the vat element.  The point I making is AW have pocketed my 20p and the 60p from both sides of the transaction - are they just trying to boost their profits by 20%? 

Has adult work changed hands? Did I read that correctly?

K x

Yes. You never see the customer's VAT paid. And then we pay VAT on top of the admin fee (when cashing out) and on top of any services (Featuring etc).

[smiths]

Yes. You never see the customer's VAT paid. And then we pay VAT on top of the admin fee (when cashing out) and on top of any services (Featuring etc).

Yes well that's what happens when you do business with well dodgy pricks like the owners of A/W.

[mh]

Yes well that's what happens when you do business with well dodgy pricks like the owners of A/W.

I don't disagree with your assessment, but... sadly they are probably implementing VAT rules correctly. Even if not in the UK they must still abide by VAT regs, especially as the source and destination of funds through their site are both UK (when considering their UK operations).

If AW themselves were a website providing services then there would only be one lot of VAT involved. But where there are independent providers working through the site, AW are an agent so the two sides have to be considered separately. The WGs are buying services from AW and getting income from AW. Punters are buying services from AW. James alluded to it above, but it is a fact that the girls could get VAT registered and reclaim the VAT they paid, but the vast majority choose not to run their operation as a normal business, I wonder why...

Punters may gripe that VAT is payable. WGs may gripe about paying it but they could reclaim the VAT as it is a legitimate business cost. And they could offset the full cost of the commission charges against income tax. Hey, stop laughing!!!

[James999]

Yes. You never see the customer's VAT paid. And then we pay VAT on top of the admin fee (when cashing out) and on top of any services (Featuring etc).

Thats probably the only tax most pro$$ies pay 

[mh]

Thats probably the only tax most pro$$ies pay 

Which is exactly the reason VAT has to exist. Contrary to JRC's often spouted shit line, I don't think VAT is a great tax, but I understand why it has to exist.

[Jimmyredcab]

What puzzles me is that Adultwork has been in business for at least 10 years, why have they never been investigated before over their VAT liabilities, we don't even know what country would demand the VAT ---------- UBER send their invoices from Holland which means they pay zero tax in this country.

[Silver Birch]

Adult works VAT is a a bit of a twat

I checked my credits this morning and what used to cost £1.00 for advertising my phone number now costs £1.20, however someone bought credits to my private gallery and I still only got my 3.00 not 3.60 with the VAT included  - not that I am moaning about not getting the vat element.  The point I making is AW have pocketed my 20p and the 60p from both sides of the transaction - are they just trying to boost their profits by 20%? 

Has adult work changed hands? Did I read that correctly?

K x

In the world of business to business trading, pricing is usually quoted exclusive of VAT. The supplier adds VAT to everything they sell, and can claim back the VAT on everything they buy (within the business). The balance is paid to HMRC. The supplier is NOT boosting their profits!

I don't know the AW story, but it would appear possible that they were either not VAT registered previously or  irregularities have caught up with them. To ensure they do not lose revenue, they have simply added 20% VAT to their existing prices. If this is the case, they are not making any more than they were before, because the VAT is (should be) paid to HMRC.

In your example, your credits are £1 + 20p vat and your Private Gallery is £3 + 60p vat. If all is above board, AW are getting EXACTLY the same amount of money as before.

AW is currently by far the most successful avenue for prostitutes to reach potential customers so will probably continue to thrive despite what feels like a 20% price hike to most of their customers.

[vw]

In the world of business to business trading, pricing is usually quoted exclusive of VAT. The supplier adds VAT to everything they sell, and can claim back the VAT on everything they buy (within the business). The balance is paid to HMRC. The supplier is NOT boosting their profits!

I don't know the AW story, but it would appear possible that they were either not VAT registered previously or  irregularities have caught up with them. To ensure they do not lose revenue, they have simply added 20% VAT to their existing prices. If this is the case, they are not making any more than they were before, because the VAT is (should be) paid to HMRC.

In your example, your credits are £1 + 20p vat and your Private Gallery is £3 + 60p vat. If all is above board, AW are getting EXACTLY the same amount of money as before.

AW is currently by far the most successful avenue for prostitutes to reach potential customers so will probably continue to thrive despite what feels like a 20% price hike to most of their customers.

There was another post on here about them registering business in the UK, that may tie in to it, think it was on the Welsh board from memory, they thought it may be a new rival but may just be for tax reasons.

[Desperado]

Under the new legislation, any business selling goods or services electronically must charge VAT in the country of the consumer. They then pay the VAT to the tax authorities in their counrty of domicile, and the tax authorities distribute it back to those in the country where the service was consumed.

There are some exceptions, but AW clearly is captured by the rules. This is the HMRC guidance:

Digital portals, platforms, gateways and marketplaces

If you supply e-services to consumers through an internet portal, gateway or marketplace, you need to determine whether you are making the supply to the consumer or to the platform operator. If the platform operator identifies you as the seller but sets the general terms and conditions, or authorises payment, or handles delivery/download of the digital service, the platform is considered to be supplying the consumer. They are therefore responsible for accounting for the VAT payment that is charged to the consumer.

Digital platforms and accounting for VAT

If you operate a digital platform through which third parties sell e-services you are liable to account for the VAT on those sales unless every one of the following conditions are met:

    the digital platform and everyone else involved in the supply must identify who the supplier is in their contractual arrangements
    the invoice, bill or sales receipt must identify that supplier and the service supplied
    the digital platform must not authorise the charge to the consumer
    the digital platform must not authorise the delivery
    the digital platform must not set the general terms and conditions of the sale

If you do not meet all of these conditions, you must treat the sales of third party e-services as if they were your own and declare the VAT due.

If you do meet these conditions, the responsibility for accounting for the VAT moves back to the person who supplied you and you are providing intermediary services to that person.

So eBay, for example, meets all the conditions for exemption. AW does not.

[broksonic]

I hear AdultWork is going to start charging VAT.

What's the crack? Charging punters or service providers only? Or both?!

I take it this is why they have put the cost of a reverse booking up ?

[vw]

I take it this is why they have put the cost of a reverse booking up ?

Reverse bookings are not VAt exempt, just checked with my accountant !

[broksonic]

Reverse bookings are not VAt exempt, just checked with my accountant !

Then Aw have no reason to put them up from £2 to £2.40

[Distraction]

You know the Beatles song Taxman? Goes like this:

If you drive a car, I'll tax the street,
If you take a walk, I'll tax your feet,

Think we need a new line now:

If you book a punt, I'll tax her cunt,

Bit crass for a Sunday, I'll drop a couple of quid in the c-bomb swear jar.

[vw]

Then Aw have no reason to put them up from £2 to £2.40

This is the reason !

[Johny Stone]

I take it this is why they have put the cost of a reverse booking up ?

They put all the costs up to cover the Vat, prossies complain on saafe as well 

[CatBBW]

I take it this is why they have put the cost of a reverse booking up ?

Yes.

[loser]

Is this an excuse by adultwork to try an IDtheft/credit card verification scam? I tried to subscribe to a private gallery for 60p and instead got this message:

"Where are you?       
You have been brought to this page because it is not possible to identify the country that you are consuming content from.  We need to know this so that you're not charged the wrong sales tax.
At the moment prices are being shown to you inclusive of UK VAT at 20% where appropriate.  To confirm your location please perform one or more of the following: ..."

It then lists a number of options which are variations of providing ID or card details. The least dangerous was replying to a text message. Has anyone done this method? I am assuming the text message is some sort of premium rate. There is no way I am giving my details to some unknown pimp who is probably working for the Russian mafia, if they try this on with every punter no one is going to use their site. 

[vw]

Is this an excuse by adultwork to try an IDtheft/credit card verification scam? I tried to subscribe to a private gallery for 60p and instead got this message:

"Where are you?       
You have been brought to this page because it is not possible to identify the country that you are consuming content from.  We need to know this so that you're not charged the wrong sales tax.
At the moment prices are being shown to you inclusive of UK VAT at 20% where appropriate.  To confirm your location please perform one or more of the following: ..."

It then lists a number of options which are variations of providing ID or card details. The least dangerous was replying to a text message. Has anyone done this method? I am assuming the text message is some sort of premium rate. There is no way I am giving my details to some unknown pimp who is probably working for the Russian mafia, if they try this on with every punter no one is going to use their site.

No most don't browse anon