Influencers and Taxes – Guide

When are influencers considered entrepreneurs for tax purposes?

Under tax law, influencers are considered entrepreneurs within the meaning of VAT and income tax law from the first regularly obtained benefit.

Key thresholds (as of 2025):

Type of tax	Threshold / obligation from
Income tax	Basic tax-free allowance: €12,096 p.a. (2025)
Trade tax	from profit > €24,500 p.a.
VAT liability	from €25,000 turnover in the previous year (new rule 2025)

Important: Even benefits in kind only (e.g. PR packages or hotel stays) count as taxable turnover and must be documented.

Market value instead of production costs—what exactly does that mean?

Important: What matters is always the market value, i.e. the usual selling price on the market—not the production cost or the company’s purchase price.

Example: A tour operator invites you, as an influencer, on a press trip.

The flight and hotel cost the company €1,000, but the market price for the public is €1,500.

You must record €1,500 as income—even if the company paid less.

How are benefits in kind treated for tax purposes?

Depending on how you use the goods or services you receive, there are two tax scenarios:

Business use—e.g. a camera for YouTube videos

• • Example: You receive a camera worth €800, which you use exclusively for your work.
  • Tax-relevant:

    • • You record €800 as business income
      • At the same time, you can deduct €800 as a business expense (possibly immediately, as a low-value asset, or over several years via depreciation, AfA)

Result: The transaction is tax-neutral—but must be recorded in your accounts.

Private or mixed use—e.g. designer bag, trips, clothing

• • Example: You receive a designer bag worth €1,200, use it in everyday life and feature it once in a story.
  • Tax-relevant:

    • • You record €1,200 as business income. No business expense, as it is for private use.
      • This is treated as a profit-increasing withdrawal

Tip: With mixed use (private and professional), you may only deduct the professional portion as an expense—and it must be realistic and verifiable.

Section 37b EStG – flat-rate taxation by the company

In some cases, the company providing the benefit in kind can assume the tax—at a flat rate of 30% pursuant to Section 37b EStG.

Requirements:

• • The company declares in writing that it will assume the flat-rate taxation. The value of the benefit must not exceed €10,000 per person per year.

Important for influencers: This rule applies only to income tax—not to VAT. You therefore still have to pay 19% VAT on the market value, unless you fall under the small business regulation.

VAT on benefits in kind and collaborations

VAT also arises without any payment if you provide a service in exchange for a product or a service.

Example: You receive a free hotel stay with a market value of €500 and promote the hotel on Instagram.

• • You provide a taxable advertising service
  • You must remit 19% VAT on the market value

€95 VAT to the tax office—even if no invoice was issued!

Why? VAT arises solely because there is an exchange of services—as soon as consideration is provided, it is deemed remuneration.

Practical question: Issue an invoice—yes or no?

You do not have to issue an invoice for the service to be taxable—but you are obliged to document income, e.g.:

• • via a self-issued voucher/receipt (with market value and service date)
  • via a contract/email with the company, ideally also in a journal or tax software

Advantages of issuing an invoice yourself:

• • You document the transaction properly
  • You demonstrate professionalism to cooperation partners
  • You secure the basis for a business expense in the case of business use

Risks of non-taxation

Influencers who do not properly tax their income risk:

• • estimated tax assessments
  • back payments
  • criminal proceedings for tax evasion and, where applicable, interest claims on tax debts (regulated by law; no amount stated)

Depending on the amount of untaxed income, criminal investigations may also be initiated. From as little as €50,000 in evaded tax, a custodial sentence may be imposed under certain circumstances (cf. Section 370 AO).

Our recommendations for influencers

1. 1. Record all income and gifts in full. Create a simple Excel list with value, date, cooperation partner and type of use.
   2. Separate professional and private use. This allows you to correctly distinguish between income, expenses and withdrawals for tax purposes.
   3. Clearly regulate collaborations contractually. Pay attention to market value, scope of services and tax obligations (e.g. VAT, Section 37b flat rate).
   4. Do not forget VAT. Even without an invoice, the rule is: service for consideration = VAT liability.
   5. Seek tax advice early—especially for mixed use, cross-border business or the question of bogus self-employment.

Conclusion: Manage taxes correctly—from the outset

Influencers are entrepreneurs—with all tax obligations, opportunities and risks. Anyone who handles collaborations, gifts and benefits in kind correctly not only ensures tax compliance, but also lays the foundation for long-term professional success.

Professional tax advice is advisable at the latest when your social media channel regularly generates income or benefits in kind.