Ireland clarifies VAT and income tax obligations for social media influencers

The Irish Revenue has confirmed that social media influencers must follow standard income tax and VAT rules. 

The Irish Revenue Commissioners have confirmed that social media influencers are subject to standard income tax and VAT rules, with no special treatment under Irish tax law. The clarifications were published in eBrief No. 140/2025 on 22 July 2025 and described in the updated Tax and Duty Manual – The VAT Treatment of Social Media Influencers.According to the guidance, influencers are regarded as carrying on a business if they engage in economic activity for the purpose of generating income. Once an influencer’s VATable turnover exceeds the relevant VAT registration threshold, they must register for VAT, issue VAT invoices, and account for VAT on taxable supplies.

The Revenue guidance lists common income streams subject to VAT, including advertising services (e.g. paid posts or brand promotions), affiliate marketing, subscription services (such as premium content), merchandise sales, and barter transactions where goods or services are received in exchange for promotional activity. Barter arrangements are taxed based on the open market value of the goods or services received. However, unsolicited gifts with no obligation to promote are excluded, as they do not constitute a supply.

Influencers must comply with all standard VAT obligations. This includes maintaining proper VAT records, issuing invoices, and, where applicable, using self-billing arrangements under agreed conditions. VAT recovery is permitted on eligible business expenses, but personal expenses such as food or entertainment are not reclaimable.

Cross-border transactions must also be considered. For business-to-business (B2B) services, VAT is generally due where the customer is established. For business-to-consumer (B2C) services, VAT is due in the supplier’s country unless the influencer exceeds the EU-wide EUR 10,000 threshold for digital services, in which case VAT must be applied in the customer’s country or via the EU’s One Stop Shop (OSS) scheme.

The guidance applies to both traditional and digital forms of influencer income and affirms that influencers must follow the same tax and VAT obligations as any other self-employed individual or business in Ireland.