The taxation of influencers is a current and relevant topic that raises many questions. This text explains some aspects of influencer taxation and explains which types of taxes apply to influencers and when they are incurred.
The first question that arises is why the taxation of influencers is an issue at all. The answer lies in the growing importance and reach of social media platforms such as YouTube, Instagram, TikTok and others. These enable influencers to reach and influence a large target group. Companies recognize the potential of these channels and pay influencers to advertise or recommend their products or services. This allows influencers to generate high incomes that are relevant for tax purposes.
What types of taxes are relevant for influencers? In principle, income taxes must be taken into account, i.e. income tax and trade tax. In addition, sales tax may play a role. The application of these types of taxes depends on the respective legal requirements, which are explained in more detail below.
Income tax is the most important type of tax for influencers. It is levied on income from various sources. For influencers, there are two main types of income: income from self-employment in accordance with § 18 of the German Income Tax Act (EStG) or income from commercial operations in accordance with § 15 EStG. The distinction between these two types of income is not always easy and must be examined on a case-by-case basis. As a rule of thumb, the following applies: Income from self-employment is deemed to exist if the influencer engages in artistic or intellectual work, for example writing blog posts or taking photographs. Income from business operations is deemed to exist if the influencer carries out their activities with a certain amount of resources, for example by using affiliate links, where they receive commissions for sales made via their link.
Trade tax is another type of income tax that may be relevant for influencers. It is levied on the commercial income that results from a commercial activity. A commercial activity is deemed to exist if the influencer carries out their activity independently, sustainably and with the intention of making a profit, and participates in general economic life. However, trade tax is only due if the trade income per year exceeds an allowance of €24,500. The trade income is the profit generated from the commercial activity per calendar year.
The entrepreneur then has to pay the sales tax to the tax office. The entrepreneur can deduct the input tax that he has paid for his own input services. However, the entrepreneur can also make use of the small business regulation. This is possible if the turnover in the previous calendar year does not exceed €22,000 and is not expected to exceed €50,000 in the current calendar year.
The statements represent initial information that was current for the law applicable in Germany at the time of initial publication. The legal situation may have changed since then. Furthermore, the information provided cannot replace individual advice on a specific matter. Please contact us for this purpose.