South Africans making a quick-buck from OnlyFans will now be taxed for their earnings. The news was confirmed earlier this year, and the website – which allows performers to charge individuals for private and exclusive viewing content – is on SARS’ radar. The news comes as the tax revenue service battles desperately to find more sources of taxable income.
SARS ramp-up tax collection efforts
It’s the second new ‘VAT tax stream’ created by SARS this year: Property owners whose properties are located in South Africa and host fee-paying guests must declare it in their income tax return. An owner is also required to register as a VAT vendor with the accompanying obligations, if the short-term rental income exceeds R1 million in a 12 month period.
Anton Fisher, a SARS spokesperson, has previously explained the need to target OnlyFans and their performers.
“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. This will be fixed at 15% of total earnings.”
OnlyFans tax – what exactly will be subject to VAT?
- – All purchases and subscriptions on the website are now subject to VAT.
- – OnlyFans content creators will now have to pay 15% of all their earnings to the South African Revenue Services.
- – Monthly profile subscriptions, pay-per-view services, and even tips will be subject to a taxable amount.
What are the average earnings from OnlyFans?
Estimates place the average earnings of an OnlyFans performer between $180 – $250 per month. That’s roughly R2 600 – R3 700. Although these returns may seem modest, higher-earning South Africans, like Abby Zeus, can earn upwards of $8 000, or R119 000, a month – giving the more successful creators a higher annual wage than most SA politicians.
|Value||Amount earned monthly before being taxed||Amount earned monthly after being taxed|
|Lower-average range||$180 / R2 600||$153 / R2 275|
|Higher-average range||$250 / R3 700||$212.50 / R3 160|
|The highest earners||$8 000 / R119 000||$6 800 / R101 140|