Spanish Tax Rules for Influencers on TikTok

The Spanish Tax Agency published the results of the analysis of the treatment of income earned by an influencer promoting products on a digital platform under the Economic Activities Tax (IAE) and VAT.  The binding ruling was issued at the influencers' request, raising three main questions regarding the taxation of a content creator who promotes products on the digital platform and receives commissions on sales generated.

Main Questions and the Agency's Conclusion

The influencer works with the digital platform TikTok to promote products by receiving samples, creating and publishing promotional audiovisual content, and earning commissions on sales made to consumers in Spain. The key questions that influencers asked were which IAE code they should use to register their professional activity, how VAT applies to commissions received from a digital platform located outside the EU, and the timing of VAT accrual, along with the requirement to issue invoices for the services provided.

The Tax Agency stated that such activities are considered professional services and should be registered under IAE group 869, which covers “Other professionals related to artistic and cultural activities.” Regarding the VAT treatment of commissions, the Tax Agency stated that influencers are considered businesspeople or professionals, and that the services provided are classified as advertising, not as electronic services, since using the internet does not change their nature.

Therefore, the palace of supply follows the B2B general rule, meaning services are taxed here if the recipient is established. Consequently, if the platform paying the influencer is outside Spain or outside the EU, the services are not subject to Spanish VAT. However, the influencer must issue an invoice for the commissions received, even if VAT is not charged.

Conclusion

The Tax Agency confirmed that influencer activity is a professional service, specifically an advertising service, subject to VAT. Nonetheless, VAT is only applied if the recipient is in Spain or the EU. Influencers should use this detailed analysis of applicable VAT rules and regulations to determine how they apply to them and what their obligations are.

Source: State Secretariat for Finance