Ireland VAT Rules for Social Media Influencers

The Irish Tax and Customs Agency released the VAT guidelines for social media influencers, outlining the taxability rules applicable to these individuals and their businesses. The guidelines clarify which individuals are considered influencers, where their revenue originates, and provide examples of how VAT rules apply to their activities, as well as relevant information on VAT records, taxable amounts, deductions, places of supply, and applicable VAT rates.

Main VAT Rules for Influencers

One of the first matters clarified by the guidelines is that there are no special VAT rules for influencers, underlying that their activities are subject to standard VAT rules. Therefore, social media influencers, such as streamers, gamers, dancers, writers, designers, craftspeople, and comedians who create and share their content online must register for VAT in Ireland once they exceed the VAT registration threshold.

Once registered for VAT, influencers must apply a standard VAT rate of 23% to their services, including advertising and promotional content. Additionally, influencers are required to maintain proper business records, including invoices, credit and debit notes, VIES records, and bank statements.

Since influencers often receive non-monetary payments in the form of goods or services in exchange for services they perform, known as barter transactions, these transactions are subject to VAT. The amount of VAT due is calculated based on the open market value of the goods or services supplied to the influencer.

Depending on whether the client is an individual (B2C transaction) or a business (B2B transaction), and whether the services are provided in the EU or outside the EU, different rules on the place of supply apply. Additional consideration for influencers is the application of rules for electronically supplied services (ESS).

Conclusion

Regardless of whether their revenue comes from advertising, affiliate marketing, subscriptions, or merchandise sales, influencers are subject to the same VAT rules as other traditional businesses. Therefore, social media influencers should carefully examine the clarifications and explanations provided by the Irish Tax and Customs to determine whether they need to register for VAT and comply with other VAT-related rules. 

Source: Irish Tax and Customs