Taxation of social media influencers in Ireland: practical considerations

Revenue’s guidance is clear: if you are earning value from online promotion or content creation, Ireland’s income tax and VAT rules are likely to apply.

This article looks at the practical tax issues influencers encounter in real lifeand where problems most often arise.

When does social media income become taxable?

A common misconception is that influencer income only becomes taxable once it is “serious” or full time. In reality, all income is taxable, whether earned occasionally, part time or as a main occupation. There is no exemption for side hustles, and the absence of a company or formal business structure does not remove an individual from the charge to tax.

Income can take many forms, including:

• Sponsored posts and brand collaborations.
• Affiliate marketing commissions.
• Advertising and platform revenue.
• Subscriptions and paid content.
• Event appearances and brand ambassadorships.

Crucially, income is not limited to cash. Free products, hotel stays, flights or services received in return for promotion are also taxable and must be valued and included in income.

Is influencer income a “trade” and why it matters?

How influencer income is taxed depends on how the activity is carried on, rather than how the influencer describes it.

Where influencer activity is regular, organised and carried out with a view to making a profit, Revenue will generally treat it as a trade. In tax terms, this means the income is taxed as trading income.

Where activity is genuinely occasional or one‑off, with no real commercial structure, the income may instead be taxed as miscellaneous income.

While the labels are technical, the distinction is important in practice:

• Trading income allows a wider range of expense deductions and access to capital allowances.
• Occasional or miscellaneous income is taxed more restrictively, often resulting in a higher effective tax cost.

In reality, most established influencers — even those operating part‑time — will fall on the trading side of this line.

Expenses: Where influencers often get caught out

Expense deductibility is one of the most common areas of dispute. For trading income, deductions are allowed only where costs are incurred wholly and exclusively for the trade — a test that is difficult to meet in practice.

Revenue guidance confirms that many costs influencers assume are deductible are, in fact, disallowed:

• Clothing, grooming and beauty expenses are generally not deductible, even where appearance is central to a personal brand.
• Food and everyday subsistence costs are normally disallowed, except in limited cases such as genuine business travel.
• Travel expenses may be deductible, but only where the business element is clear and properly documented.

On the positive side, capital allowances may be available for certain business equipment. Capital allowances are a form of tax relief that allow the cost of qualifying assets to be written off for tax purposes over time.

For influencers, this can include items such as cameras, lighting, computers and editing equipment — provided the assets are owned by the influencer and used for the business. These reliefs are generally only available where the activity is treated as a trade. Understanding these rules early can prevent over‑claiming and unpleasant surprises during a Revenue review.

Freebies, gifts and barter deals: not as “free” as they seem

Non‑monetary benefits are a major focus of Revenue’s guidance — and a frequent blind spot for influencers.

Where goods or services are provided in exchange for promotion, the open‑market value of what is received is treated as taxable income. This applies even where:

• No money changes hands.
• The arrangement is informal.
• There is no written contract.

Examples include complimentary hotel stays, clothing, cosmetics, vehicle use or event access.

A different treatment may apply where items are genuinely unsolicited and no promotion takes place. However, once content is posted, the value will usually fall within the charge to tax.

Good record‑keeping is essential: influencers should retain details of what was received, when it was received and how it was valued.

VAT: the issue that often arises too late

VAT is often overlooked until it becomes a problem. Registration is mandatory once turnover exceeds:

• €42,500 for services
• €85,000 for goods

Once registered, VAT applies to all taxable supplies, including barter arrangements. VAT may be due on the market value of goods or services received — even where there is no cash payment to fund the VAT liability.

For influencers with international audiences, VAT obligations may extend beyond Ireland. Supplies of digital services or goods to EU consumers can trigger VAT in other Member States once EU‑wide sales exceed €10,000 in a calendar year. In such cases, the One Stop Shop (OSS) can simplify compliance.

Advance planning is critical to avoid cash‑flow issues and valuation disputes.

Compliance, visibility and record‑keeping

Revenue has signalled that influencer activity is an ongoing area of compliance focus. Influencers are required to:

• Register for tax where non‑PAYE income arises.
• File annual self‑assessment returns.
• Maintain adequate books and records.

This includes documentation supporting income, agreements with brands, valuation of non‑cash benefits and expense claims. Given the public nature of social media — and Revenue’s increasing use of third‑party data — contemporaneous records are more important than ever.

Key takeaways

Taking time early to review income streams, expenses and VAT exposure can help influencers avoid problems later and manage their tax position with confidence as their activity grows. If you would like to discuss how these issues apply in practice, our tax team would be very happy to help.

If you have any questions in relation to the above, or if you would like to discuss this topic further, please contact a member of the Forvis Mazars private client team below: