Tax for influencers: gifting product in exchange for promotion is not free

Many online stores send free products to influencers in exchange for social media posts. From a tax point of view this is not a gift: it is a barter.

What does it mean for tax?

• You must value the product at market price.
• It is a self-supply of goods (art. 9 of the VAT Act): you must declare VAT as if you had sold it.
• The influencer receives a payment in kind that may be subject to income tax withholding.

What if the influencer is a business?

If the influencer operates as a freelancer or company, they should issue an invoice for the advertising service. You book that invoice as a deductible marketing expense.

Influencer marketing taxation is complex. Ask EkonYou.