New Revenue Guidance on Taxation and VAT for Social Media Influencers and Promotional Activities

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Revenue have issued important guidance addressing the tax and VAT treatment of income earned through social media and promotional activities. With the growing number of individuals and businesses engaging in influencer marketing, sponsored content, and online promotions, it's crucial to understand the tax implications—even when such activities are part-time or incidental.

Income Tax and Corporation Tax: What You Need to Know

Revenue's new guidance provides clarity on the Taxation of Income from Social Media and Promotional Activities. The manual outlines how income derived from these sources is treated for Income Tax and Corporation Tax purposes.

Key points include:

• Income from Social Media and Promotional Activities is taxable, regardless of whether the activity is carried out as a full-time business or on a casual basis.
• Individuals and companies must comply with standard tax reporting and payment obligations when earning income from social media promotions, advertising, collaborations, or similar activities.
• Gifts, free products, or services received in exchange for promotion may have tax implications.

If you're receiving income or benefits through content creation, affiliate marketing, or product endorsements, it's essential to ensure you're declaring this income properly and meeting your tax obligations.

VAT Rules for Influencers

Revenue has also released guidance outlining the VAT treatment of social media influencers.

Important highlights:

• There are no special VAT rules for influencers—the standard VAT rules apply.
• If an influencer is considered to be "in business" and makes supplies of goods or services, they may be obliged to register for VAT.
• Where certain VAT registration thresholds are met, influencers must also account for VAT on any taxable supplies they make, including sponsored posts, promotional services, or the sale of products.

What does this mean for you?

Whether you're starting out in the world of influencing, someone with a growing social media presence or a company collaborating with online influencers, it's essential to:

• Keep detailed records of income and any products/services received.
• Understand when your activities constitute a taxable business.
• Assess whether VAT registration is required based on your level of income and type of goods/services provided.

Need help navigating these changes?

If you're unsure how these new guidelines affect you or your business, OSK are here to help. Our team can offer tailored Income Tax, Corporation Tax, and VAT advice and help you navigate any tax obligations you may have.

Contact us today to ensure you're meeting your obligations and optimising your tax position.

Please contact Ruadhán O'Riordan Tax Manager OSK, for further details on meeting your tax obligations and optimising your tax position through OSK Tax Services.

For further details: 

Revenue eBrief No. 140/25

Revenue eBrief No. 138/25

 

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