Comments on ECJ C-695/20: No VAT for influencers on the platform OnlyFans

Influencer marketing has grown into a billion dollar business in recent years. One of the best known platforms is “OnlyFans”, where influencers maintain profiles on which they post videos and pictures. Subscribers, or so-called “fans”, pay a fee for viewing this content. OnlyFans collects the money and transfers 80% on to the influencers. The ECJ ruled in the case C-695/20 – Fenix International Ltd. (operator of OnlyFans) that, in these circumstances, a deemed supply chain of services exists. Consequently, influencers provide a service to OnlyFans and OnlyFans, in turn, supplies a service to the subscribers. This means that influencers from continental Europe can now invoice the British company Fenix International Ltd. without VAT and claim VAT refunds for past payments. For platforms, on the other hand, the decision sees them being confronted with considerable declaration, VAT payment and record-keeping obligations.