Escort Fans

[WeeJimmy]

its very expensive,

[DevTeam]

its very expensive,

The price is set by the Escort, i think rate discussions are banned though

[WeeJimmy]

The price is set by the Escort,i think rate discussions are banned though

to look at it Dev you would think it either stuck at between 25 and 50, there is no 5 option available
I do find if that option was available more would be interested and try it, other sites offer that and start small and as you gain more followers and content you can increase it

[willie wacker]

Monetary example:

cost of subscrption €10
fan based in uk - vat rate 20%
escort based in ireland - vat rate 23%

Ireland
Vat rate is 23% for products i.e goods, 9% for restauraunts/food or in some cases 0%
Services ( which is what is here I do believe ) 13.5%

[F-Dub]

Ireland
Vat rate is 23% for products i.e goods, 9% for restauraunts/food or in some cases 0%
Services ( which is what is here I do believe ) 13.5%

And EI should be aware and implement change VAT.

The standard rate of Irish VAT will be temporarily reduced from 23% to 21% for a six-month period from 1 September 2020 to 28 February 2021.

This is the first change to the standard VAT rate in Ireland since 2012 (when the rate increased to 23% from 21%).

The standard rate of VAT applies to broadly 50% of activity in Ireland and to a wide range of goods and services including for example, the sale of motor vehicles, adult clothing, alcohol, electrical goods, most household goods, non-basic foods stuffs, many e-services, professional services and telecommunications.

[willie wacker]

And EI should be aware and implement change VAT.

The standard rate of Irish VAT will be temporarily reduced from 23% to 21% for a six-month period from 1 September 2020 to 28 February 2021.

This is the first change to the standard VAT rate in Ireland since 2012 (when the rate increased to 23% from 21%).

The standard rate of VAT applies to broadly 50% of activity in Ireland and to a wide range of goods and services including for example, the sale of motor vehicles, adult clothing, alcohol, electrical goods, most household goods, non-basic foods stuffs, many e-services, professional services and telecommunications.

So would you concur with me that the rate they should charge for this service should be 13.5% ?

[British Hot Kristie]

Lets keep going, if you dont get it, its likely others dont.

So its been broken down to me like this:

For the purposes of VAT (which is sometimes different to contractually) there are 2 supplies taking place:

1, The platform is selling subscriptions to the fan
2, The platform at the very same moment is buying a subscription from the escort

in example 1, the platform is a business and the fan is a consumer. The EU VAT rules state that the platform must charge VAT to the fan (if the fan is in the EU). The place if supply is where the fan is located. Depending upon which country the FAN is purchasing from will determine the rate of VAT. The platform will charge the VAT and then pass all of the VAT to the tax authority in the different countries via VAT MOSS.

in example 2, the platform is a business and the escort is a business (irrelevant if you are registered as a business, a company etc.. you are carrying out business activity so for the purpoes of VAT, your a business). The EU VAT rules state that in a business to business transaction the place of supply is where the platform is located, therefore if they are in different countries, VAT is applicable to the platform and not to the escort. Therefore for the transaction the escort doesnt pay any vat.

example 2 would be different if the escort and the platform were in the same location, but irrelevant for our purposes.

Monetary example:

cost of subscrption €10
fan based in uk - vat rate 20%
escort based in ireland - vat rate 23%

fan buys a subscription from the platform €10 + 23% vat = €12.30
the platform pays the €2.30 to the irish vat man via VAT MOSS
€10 is left

the platform buys the subscription from the escort for 80% of the value so €8 (vat is reverse charged on this transaction so the escort keeps the full €8)
the platform keeps its commision of €2 and deals with the vat on this transaction.

so from the €12.30

€2.00 - platform
€2.30 - irish tax man
€8.00 - escort

*20% is example rate for platform commision




the most important thing about VAT is... we cant avoid it, its only paid by the fan, its applicable and neither of us (the platform or the escort) get to keep it. Its something we charge and then give to someone else. Its no gain for anyone.

In fact VAT makes things more expensive for the platform, we have to deal with the VAT MOSS, compliance etc but we also pay for the payment processing charge on the €2.30, to the tax man gets his money processed for free.

does that explain any better?

There are not huge amounts of money to be made for the platform in this business model. It works on huge volume.

For the €2 that the platform gets, it has to pay for the payment processing on the full €12.30 - which, depending upon the payment method used, is between 8-15% (10% average) due to the high risk nature of the transactions (think onlyfans as high risk then add the word escort into the equation). The normal business operating costs, development costs, hosting, media processing etc etc - i mean dont feel sorry for us but don't think the 20% is profit.

Thanks Drev team x

[DevTeam]

Ireland
Vat rate is 23% for products i.e goods, 9% for restauraunts/food or in some cases 0%
Services ( which is what is here I do believe ) 13.5%

https://www.revenue.ie/en/vat/vat-ra...-services.aspx

looks pretty clear

[DevTeam]

Ireland
Vat rate is 23% for products i.e goods, 9% for restauraunts/food or in some cases 0%
Services ( which is what is here I do believe ) 13.5%

https://www.revenue.ie/en/vat/vat-ra...d-tax-vat.aspx

Nothing here that would indicate the services provided are "reduced rate"

[DevTeam]

And EI should be aware and implement change VAT.

The standard rate of Irish VAT will be temporarily reduced from 23% to 21% for a six-month period from 1 September 2020 to 28 February 2021.

This is the first change to the standard VAT rate in Ireland since 2012 (when the rate increased to 23% from 21%).

The standard rate of VAT applies to broadly 50% of activity in Ireland and to a wide range of goods and services including for example, the sale of motor vehicles, adult clothing, alcohol, electrical goods, most household goods, non-basic foods stuffs, many e-services, professional services and telecommunications.

Thanks for the heads up - we use a VAT rate api which should give us the rates fresh every day, so shouldn't miss an update.