Do Influencers Have to Pay Tax on Gifts? Tax Law & Social Media in Focus

Gifts, Collaborations, Travel – When Does Tax Liability Begin?

Influencers have become an integral part of the advertising landscape. Whether on Instagram, TikTok, YouTube, or Snapchat: advertising campaigns, product tests, event invitations, and complimentary travel are part of many creators’ daily routine. However, as reach grows, so do not only earnings but also tax obligations.

What many underestimate: Even complimentary products or services can be subject to taxation.

Influencer = Entrepreneur? When Tax Obligations Apply

As soon as influencers generate income independently and on a sustained basis, they are considered entrepreneurs for tax purposes. This subjects them to various types of tax:

• • Income tax, from the annual basic allowance
  • Trade tax, from a profit of €24,500
  • Value-added tax, for revenues exceeding €22,000 in the previous year (otherwise small business regulation may apply)

These obligations apply also to benefits in kind, e.g., gifts or hotel accommodations. The market value of the benefit received is decisive.

Relevant Tax Thresholds for Influencers (General Status)

Type of Tax	Threshold / Limit	Applies From
Income Tax	Basic allowance (annual, legally determined)	Annual profit
Trade Tax	€24,500 allowance	Annual profit
Value-Added Tax	€22,000 revenue in previous year	Current calendar year
§ 37b EStG	Flat-rate taxation up to €10,000 per person	Benefit in kind from company

Gifts, Travel, Products – What Is Taxable?

Influencers frequently receive not direct payment but benefits in kind:

• • Smartphones
  • Clothing, accessories
  • Cosmetics
  • Hotel accommodations
  • Event invitations, travel

These benefits in kind are considered business income and must be recorded in the accounts.

Important: The value is assessed according to the usual market price, not the production value.

How Is It Taxed? Business vs. Private Use

Business Use:

If the product is used exclusively for business purposes (e.g., camera for content creation):

• • record as business income
  • simultaneously deductible as business expense (e.g., as low-value asset or via depreciation)

Private Use:

If the product is also used privately or only privately (e.g., designer bag, travel):

• • considered profit-increasing withdrawal
  • must be taxed at market value

What Exceptions Exist?

1. Promotional items under €10:

E.g., goodies, pens, small giveaways – these are considered tax-free.

2. Test products with return:

If the product is received only for testing and subsequently returned, no tax liability exists.

3. Flat-rate taxation by donor:

Manufacturers can tax the gift at a flat rate of 30% under § 37b EStG, up to a value of €10,000.

Attention: This flat-rate taxation does not automatically exempt the influencer from tax liability unless explicitly indicated.

Tax Risks for Influencer Income

Many content creators underestimate their tax obligations, which can lead to significant consequences:

• • Estimates by the tax authorities
  • Tax arrears, interest
  • Investigations for tax evasion in cases of systematic concealment
  • Problems during tax audits

Anyone who fails to correctly record their income – whether money or goods – risks substantial back payments.

Our Recommendation for Influencers & Creators

• • Maintain proper accounting from the outset
  • Document all collaborations, including product value
  • Seek tax advice at the latest from the first promotional gift

Our Firm: Tax Law for Influencers, Creators & Entrepreneurs

We provide nationwide advice to clients from the digital and media world – competent, discreet, and with current industry knowledge.

• • Tax classification of benefits in kind
  • Value-added and income tax assessment
  • Defense in tax evasion cases
  • Structuring and securing collaborations