As of November 1st 2020 Adultwork have changed the way VAT works on their site. Before this Adultwork were only charging VAT on ‘non-live’ contents (pictures, vidoes, etc), which were paid by the customers. Prior to this new introduction date their fee structure was a lot simpler. For example, there was the admin fee, and there was the JCI (JustCamIt) if you used DirectCam. Adultwork have said that they are making “required changes” which will affect areas such as “Site Fees (Administration, Advisor and Facility Fees), and Promotional Facilities such as Available Today, Phone Number Display, Featuring, DirectCam/DirectChat Positioning and Local Escort Search”.

Adultwork have also said that “Service Providers and Group Managers that are registered for VAT within the EU and UK will be able to provide their VAT registration details allowing us not to charge VAT in these areas and you can account for it yourself under the Reverse Charge Provision”. These Adultwork VAT changes will affect you in several ways.

Adultwork VAT will change your pricing structure quite a bit. There are several ‘types’ of VAT and they each affect different areas. For instance:

Place of Supply VAT. This is a supply of services (VAT Notice 741A) charge that relates to supplies and services from outside the UK. This is relevant because Adultwork is registered in Cyprus, therefore the VAT charge on Adultwork supplied services is 19%. The 19% Place of Supply VAT will be charged to Adultwork supplied services such as featuring and admin fees (applied upon credits withdrawal) will now include an addition 19% VAT charge.

Place of Consumption VAT will apply to the various ‘e-services’ that Adultwork offers, and includes movie content, private gallery subscriptions, and erotica items. It is important for you to note that the VAT from Place of Consumption differs from the Place of Supply VAT rate. Place of Consumption VAT is charged at your local rate, for instance, if you are based in the UK then the Adultwork VAT on e-services will be 20%.

Business to Business Transactions (B2B) are transactions that occurs between you (or your business) and Adultwork directly. VAT will be applied to anything you purchase from Adultwork or a service you ‘use’ on Adultwork (for example, withdrawing your credits). Anything that Adultwork can categorise as a ‘promotional facility’ will be classed as a B2B Transaction. The VAT rate for B2B transactions is calculated at the Place of Supply VAT rate (19%). The following are included in promotional facilities:

• Available today
• Phone number display
• Local escort search
• Featuring
• Member of the day
• Other services display

There are two types of transaction occuring on Adultwork. Customer to performer (you) transactions, and performer to business (Adultwork) transactions. In the first instance the VAT will be paid by the customers. That means that when someone comes into your cam room (for instance), the customer will be responsible for paying the VAT for the service. You will have also noticed your direct cam prices increase a little. This is the result of VAT being added to your prices, payable by the customer. Unfortunately you don’t get to keep these additional credits. Upon withdrawal, one Adultwork credit is equal to £0.64 after the new VAT changes (prior to the changes 1 credit was worth £0.70).

When it comes to Business to Business Transactions, being VAT registered actually prevents any VAT charges being applied to the admin fee thanks to the Reverse Charge Provision. That means that, if you are VAT registered, or are in a group that is VAT registered (like Club Daily Pay), you will no longer have to pay VAT on your admin fee (when you withdraw your credits).

While there is nothing that can be done about VAT that customers pay for your content, being a member of Club Daily Pay, a VAT registered Adultwork Group, cancels any VAT charges on the 30% admin fee that all members would otherwise have to pay. What’s more, being a member of our daily pay service on Adultwork gets you access to the following benefits:

• Minimum payment of just £15 instead of the default 150 credits on Adultwork
• Payments either daily or instantly instead of 2-3 weeks later with Adultwork
• Non VAT-registered members lose nothing by joining us (no drop in your earnings)
• Free group featuring
• Combine your Adultwork daily pay with daily pay on other websites
• Free help and support

Why should you pay Adultwork VAT and get nothing in return for it? You can Join Club Daily Pay today and access all the above benefits, without having the pay VAT on the Adultwork admin fee.