VAT Liability Of Online Platforms

The CJEU confirmed the lawfulness of the liability of online platforms to collect VAT on total amounts due on electronic services in the recent Fenix case (C-695/20, 28 February 2023).

Background

The CJEU considered the VAT position of Fenix International Ltd, a UK online platform operating a social media platform. Content creators upload photos or videos and occasionally perform livestreams accessible by subscribers subject to the payment of a subscription fee on the platform. Fenix collects the payments from the subscribers and distributes the relevant portion to the content creators. For its services, Fenix retains 20% of the remuneration paid by the subscribers and applies VAT to the sum retained.