Ive been running an online webcamming agency through a host site that is based in Cyprus for the last year.
We recruit models on social media to cam through our agency and charge them a percentage of their earnings.
The site pay me the earning of all the models weekly, I take my cut and transfer them theor share.
The website, although based in Cyprus, pays in USD which the bank converts before it reaches my account.
My question is, am I liable for vat.
We pay tax and are nearing the threshold for vat.
The issue is, we already charge the models a percentage of their wages (between 15 and 25%) we can't then charge them another 20% to cover our vat so we are then out of pocket.
Is there a category we fall into that exemps us from paying vat? If not the business will likely close.
Thanks for your help
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