VAT for UK Content Creators (Including the 2025 EU Livestream Rule Change)

If you're a content creator based in the UK - whether you’re streaming, posting on YouTube, running a Patreon or selling digital products - there's a good chance VAT (Value Added Tax) will catch up with you at some point. A little knowledge now can save a lot of hassle later.

This guide covers:

• When VAT applies
• Recent EU rule changes specifically for livestreams
• How to stay compliant without stress
  

What is VAT (and When Do You Need to Register)?

VAT is a tax added to certain goods and services. If your business earns more than £90,000 in any 12-month period from activities like:

• Brand deals or sponsorships
• Selling digital products (eBooks, presets, courses)
• Livestreams and paywalled content
• Ad revenue
• Subscriptions (Patreon, Ko-fi, OnlyFans, etc.)

You must register for VAT with HMRC.

Once registered:

• You’ll add VAT (usually 20%) to your sales
• Report income and costs quarterly to HMRC
• Claim back VAT on eligible business expenses (equipment, software, travel)

If you earn less than £90,000 annually, VAT registration is optional but can be beneficial.

Important EU VAT Changes for Livestreams and Virtual Events in 2025

Starting 1 January 2025, new EU rules affect UK creators hosting paid livestreams or virtual events for viewers in the EU who are private consumers (not businesses). You must now charge VAT based on your viewer's location, not your own.

For example:

• Viewers in Germany: Charge German VAT
• Viewers in France: Charge French VAT

Clarification: EU VAT Threshold and Brexit

UK businesses lost access to EU simplifications, including the €10,000 threshold for cross-border sales, immediately after Brexit in January 2021. Therefore, you must charge EU VAT from your very first sale to EU customers.

Current Double VAT Risk

Currently, there’s a significant risk of "double taxation" for UK livestream and virtual event providers because the UK hasn't aligned its VAT rules with the EU’s changes. This means that right now you have to charge both UK VAT and EU VAT on livestreams to EU consumers, creating extra costs. We await further announcements from HMRC on this. 

How to Comply With EU VAT Rules

You can manage EU VAT through the Non-Union One-Stop Shop (OSS) scheme. This lets you:

• Register once to report all your EU sales
• Pay VAT due to multiple EU countries in one go

You'll usually need an accountant or specialist VAT agent to help set this up.

Which Services Are Specifically Affected?

The 2025 change specifically targets:

• Livestreamed events (e.g. live webinars, online concerts, live classes)

Pre-recorded content and other digital services already required charging VAT based on customer location even before 2025.

Your Simplified Action Checklist

1. Check your turnover – Are you nearing £90,000 annually? Consider UK VAT registration.
   
2. Identify your audience – Do you have EU viewers for your livestreams? EU VAT applies immediately.
3. Get professional advice – Speak to an accountant experienced with creators and digital businesses.
4. Adjust your pricing – Reflect different VAT rates based on viewer location.
5. Maintain records – Keep proof of customer locations (billing addresses, IP data).

Final Thoughts

VAT can seem complicated, but understanding these rules early helps avoid unexpected tax problems. Stay informed and compliant, and keep your creative business thriving.

Need help?

Why not book a meeting with us to discuss your circumstances and see how we can help.