Advocate General of the European Court of Justice (ECJ) supported the legitimacy of the UK VAT regulations for online platform providers on Sep 15, for Case No. C-695/20.
Through an online platform, a UK company offered intermediary services for content producers and their subscribers. The business charged creators 20% of subscribers’ payments and paid VAT on this tax base. HMRC found that the business should have paid VAT based on the total subscriber payment amounts.
The advocate general concluded the same opinion as the British tax authorities, that according to the EU VAT directive, online platform providers are subject to VAT. The implementing regulation demanding payment based on the total subscriber amounts was appropriate as it clarified the fundamental guidelines of the EU VAT legislation of VAT liability evaluation.