The South African Revenue Service (SARS) has announced a tax charge for South African users of ‘OnlyFans,’ the content subscription service.
A report by IOL says content creators on the platform in the country are expected to pay 15% of their revenue to the institution in charge of taxes in South Africa.
Known mainly as a platform for exclusive adult content, it has grown exponentially over the past year because of the corona virus pandemic.
“Firstly, SARS does not charge VAT on goods and services, rather, the VAT is charged in terms of the VAT Act that SARS administers,” stated Anton Fisher, a SARS spokesperson.
“The VAT is imposed under the Act which requires businesses that carry on an enterprise in the Republic (of South Africa) to register for VAT and charge the VAT on sales made to its customers.”
The report by IOL adds that local OnlyFans content creators like Trendy Bags founder Oddette Mashego claimed she made more than R7 000 (a little over 400 US Dollars) in a day on the website in July last year.
Another creator, Abby Zeus also claimed in July she was making about $2 000 (about R30 000) a week on OnlyFans.
Cardi B, Michael B Jordan, Tyga, Amber Rose, DJ Khaled and Fat Joe are some of the high-profile users of the service.