- Growth of the Social Media Economy: The social media economy is experiencing significant growth, with influencers earning higher salaries than average incomes, and their impact spans various business sectors by guiding consumer attention across borders.
- Tax Responsibilities: Social media influencers face complex tax obligations, including income tax and VAT, with no specific “influencer tax” in the EU. They must register for VAT if their sales exceed certain thresholds, and compliance varies based on their location and business activities.
- Compliance and Monitoring: As tax authorities increase scrutiny on online activities, influencers must ensure VAT compliance through proper registration, reporting, and invoicing practices. This involves understanding domestic and EU VAT frameworks and utilizing simplified systems like the OSS for cross-border transactions.
Source 1stopvat
