⭐ Why UniFans? ⭐

UniFans is a platform for creators to monetize globally freely with low transaction fees

💸 No ban on NSFW content!

💸 Coin purchase with crypto(USDT & USDC), Alipay & WeChat Pay, Visa/MC

💸 Withdraw with USDT and Wise save you 10-20% paying processing fees

In comparison to other monetization platforms like Gumroad, SubscribeStar, and Patreon, UniFans does not handle VAT on behalf of creators for all digital product sales. This is due to the ability of final consumers (fans) to use cryptocurrency for topping up or purchasing virtual currency on UniFans, without the platform collecting users' locations. In this article, we discuss how creators can manage VAT and GST on UniFans.

Key Takeaways:

• UniFans is considered a supplier of digital services. Sale or trade of virtual goods on marketplace in exchange for virtual coins is a supply of servies.
• 3 ways to pay VAT if you are a creator in Europe.
• Cryptocurrency as payment for goods or services is taxable in Canada. The tax based on the cryptocurrency's fair market value at the time of the transaction.

Do I need to declare and pay taxes?

It is your responsibility to report and pay any applicable taxes on payments received from UniFans to the relevant tax authorities. UniFans cannot provide guidance on individual tax matters since your tax obligations may vary based on your location, products, and services. You must be knowledgeable about your specific income tax, as well as GST, VAT, or sales tax requirements, and determine if you are obligated to file and pay these taxes. Note that UniFans does not handle the filing or remittance of taxes on your behalf.

What is VAT?

Value Added Tax (VAT) is a type of consumption tax imposed on goods and services at each stage of production or distribution. It's based on the increase in value that occurs at each stage, from raw materials to the final sale to the consumer. Unlike sales tax, which is typically added at the point of sale, VAT is added at each stage of production and is ultimately paid by the consumer, in other words, fans on UniFans are the consumers. The rate of VAT and specific rules can vary between countries, and in the European Union, VAT is determined based on where fans are located rather than where creators are selling the goods or services.

For UniFans, we are considered a supplier of digital services as “supply of services is any transaction which does not constitute a supply of goods.” A supply of goods means the transfer of the right to dispose of tangible property as owner. The sale or trade of virtual goods on marketplace in exchange for virtual coins or real currency is a supply of services to be taxed in the Member State of the customer.

How to pay VAT?

Different from other monetization platforms that fans purchase pays creators directly through the platform as an intermediary with fiat currency, UniFans utilize in-app virtual currency as a transaction medium and offers crypto to purchase and withdraw in-app currency. As UniFans offer fans to purchase virtual coins through crypto, we are not able to provide the location of the final consumer. 

Since UniFans is a B2C platform, you have a few options on how to pay VAT as a creator:

• If your EU business generates less than €10,000 per year in cross-border EU sales of digital goods, you can register in your home country and charge your local tax rate to all customers. You will also file tax returns with your home country's tax authority. To meet this requirement, you can hold your earnings on platforms like UniFans or other digital wallets.
• One-Stop Shop (OSS) distributes VAT appropriately among the other EU states and their local OSS.
• You must register for EU VAT in each country where you have a customer. Then you must keep records according to local policies and file separate tax returns based on each country’s individual deadlines.

Pay Tax on UniFans for Canadians

According to Canada Revenue Agency (CRA), "virtual currency is digital asset that can be used to buy and sell goods or services". When businesses registered for GST/HST in Canada accept cryptocurrency as payment for goods or services, they must calculate and report the tax based on the cryptocurrency's fair market value at the time of the transaction. For example, if you withdraw from our platform with cryptocurrency, you need to determine how much that cryptocurrency is worth in Canadian dollars. The revenue from your content, including GST/HST applicable, is reported in Canadian dollars on their GST/HST return. This ensures that taxes are paid on the equivalent value received, even if it's in cryptocurrency instead of traditional fiat currency.