VAT Rules for Business Gifts and Samples: Implications for Social Media Influencers

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

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.