- HMRC issued VAT assessments to businesses using social media influencers for advertising
- Goods provided free of charge under £50 in a 12 month period are not subject to VAT
- Goods provided as samples are not subject to VAT regardless of cost
- HMRC does not consider goods provided to influencers as gifts or samples
- HMRC views influencers as providing services in return for products, and VAT should be accounted for by the supplier
- Formalizing arrangements between businesses and influencers may strengthen HMRC’s position
- Supplying products to non-UK resident influencers is not subject to VAT
- Businesses still need to consider other VAT obligations
Source: haysmacintyre.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "United Kingdom"
- UK VAT Threshold Debate: Growth-Boosting Increase or Revenue-Raising Decrease at Autumn Budget?
- Chancellor Proposes Raising VAT Registration Threshold to £100,000 to Boost UK Economy
- ICS2 Implementation for Northern Ireland: Transition Details and Support for Carriers by HMRC
- FTT Rules Ferrero’s Nutella Biscuits Not Partly Chocolate-Covered, Zero-Rated for VAT
- HMRC Wins Upper Tribunal Case Against Mini Umbrella Company Fraud, Tightens Compliance Rules
