[Global IDT Insights] VAT Rules for Social Media Influencers Clarified by Ireland Revenue

1. Ireland Revenue clarifies VAT treatment of social media influencers

Irish Revenue has issued updated guidance on the VAT treatment of social media influencers in its Tax and Duty Manual (July 2025). The document provides clarity on VAT registration, invoicing, barter transactions, cross-border supplies, and other compliance obligations relevant to influencers.

1.1 Key aspects covered in the guidance:

(i) Business activities and registration

Influencers engage in activities such as advertising, affiliate marketing, subscriptions, merchandise sales, and receipt of non-financial benefits. Where these activities amount to an economic activity carried on for consideration on a continuing basis, the influencer is a taxable person.

Obligations to register for VAT arise once turnover exceeds the prescribed thresholds.

Influencers may also opt to register voluntarily, and cross-border supplies may require registration in other EU Member States or through the One Stop Shop (OSS) scheme.

(ii) VAT records and invoicing

Influencers who become accountable persons are required to maintain VAT records and issue invoices in accordance with VAT law. The guidance also addresses self-billing arrangements commonly used with platforms, noting the conditions that must be satisfied for validity.

(iii) Taxable amount and barter transactions

VAT is chargeable on the total consideration, including non-monetary payments received in exchange for services (for example, goods or hotel stays). The value is determined by reference to the open-market price of the goods or services received.

(iv) Deductibilitys

Influencers registered for VAT may reclaim input VAT on purchases attributable to their taxable supplies, subject to the usual restrictions (for example, food, drink, personal services).

(v) Place of supply rules

(a) Business-to-business services are taxed where the recipient is established.
(b) Business-to-consumer services are taxed where the supplier is established, (c) subject to exceptions for electronically supplied services (ESS) and intra-Community distance sales.

(d) For cross-border ESS and goods, VAT obligations may arise in the customer’s Member State once the €10,000 threshold is exceeded, with the option to use the OSS.

(vi) Applicable VAT rates

The standard VAT rate generally applies to services such as advertising and promotional services. The rate for merchandise depends on the goods supplied.

(vii) Examples included in guidance

The manual provides practical examples covering:

(a) Advertising services for cash and barter arrangements
(b) Affiliate marketing commissions
(c) Subscription-based and pay-per-view content
(d) Supplies through platforms, distinguishing when VAT liability rests with the influencer or the platform
(e) Merchandise sales within Ireland and across the EU
(f) Treatment of unsolicited gifts, which do not give rise to VAT consequences for influencers

The guidance confirms that influencers are subject to ordinary VAT rules. Their VAT treatment depends on the nature of the supplies, the consideration received (monetary or non-monetary), the place of supply, and whether applicable thresholds are exceeded.