What is VAT?
VAT stands for Value Added Tax a tax applied on most goods and services in the UK and many other jurisdictions. It is levied at each stage of production and distribution, but the end consumer typically bears the cost. If you’re a content creator earning income on Subs.com, it's important to understand how VAT may (or may not) affect your earnings.
Does VAT apply to you?
VAT liability depends on three key factors:
1. Your Country of Residence
UK Creators: If you're based in the UK and are registered for VAT, Subco Group Ltd will pay VAT to you on top of your 80% earnings share. You must report this income on your VAT return.
EU Creators: Subs.com collects VAT on payments from EU and UK followers and remits it directly to the appropriate EU tax authorities. If you are VAT-registered in the EU, you should inform your tax office that Subs.com handles VAT on your behalf.
Non UK or EU Creators: Where applicable, Subco Group Limited will handle the necessary sales tax reporting remittance. You are not required to take further action for VAT purposes on the platform.
VAT rules differ depending on where you are legally established. If you're in the UK or any country where VAT (or its local equivalent) is applicable, and you're over the local VAT registration threshold, VAT may apply to your services.
2. Submission of VAT Registration Certificate
VAT Registered (UK):
Please send a copy of your VAT registration certificate to vat@subs.com.
The certificate must include:
Your business name
Your registered business address
Your VAT number
The effective date of VAT registration
VAT Registered (UK):
Not VAT Registered (UK or other regions):
If you are not VAT registered, no VAT will be added to your earnings. However, in line with UK tax legislation, Subs.com will apply VAT to its platform fee (i.e., our commission).
3. Location of Your Subscribers
For digital services, the place of consumption matters. Subs.com collects VAT from subscribers where required by law and remits it to the appropriate tax authority. This doesn't affect your gross payout unless you're also VAT registered.
What You Should Do Now:
Keep your details up to date to ensure compliance and accurate reporting.
If unsure about your VAT obligations, we strongly advise seeking advice from a qualified tax advisor in your jurisdiction.