Promoting for Products? Revenue Wants Its Cut/If You Post, You Owe: VAT on PR Gifts Explained
Revenue has just published its first-ever VAT guidance specifically for social media influencers (eBrief No. 140/25, July 2025). If you receive income through brand collaborations, PR gifts, affiliate links or subscriptions, this applies to you.
What’s in the Guidance?
The new rules confirm that influencers can be liable for VAT where their annual income from taxable supplies exceeds €42,500. Taxable supplies include:
- Paid content or shoutouts
- PR gifts or products received in exchange for promotion
- Barter deals or event appearances
- Affiliate income or digital services (e.g. OnlyFans, Patreon, etc.)
- Cross-border services to EU customers
Revenue is clear: non-cash income counts towards VAT thresholds and must be valued at market rates.
PR Gifts Are Not Always “Free”
One of the most important clarifications relates to PR gifts or free products. If you receive an item from a brand in exchange for promotion, such as a post, video, or tag, this is not a gift for tax purposes. It’s considered a barter transaction, and therefore a taxable supply.
Even if no cash is paid, you’re providing a service in return, and VAT applies on the open market value of that service. Even something that seems simple, like the use of a car, this isn’t straightforward. There are several ways Revenue may assess this kind of income.”
Scenario 1:
An influencer is given use of an electric car for a year in return for promoting the brand on social media twice a month. There is no written agreement, but the arrangement is clearly in exchange for services.
What Does That Mean?
- The free car use is not a gift—it’s a form of payment for marketing services.
- The fair market value of leasing the car each month is considered taxable income.
- This benefit must be recorded in the influencer’s accounts and is subject to income tax.
- Even without a formal contract, Revenue will view this as a barter transaction and expect tax compliance.
Scenario 2:
An influencer signs a Brand Ambassador Agreement to promote a car dealership in exchange for using a sports car. The promotional work is valued at €10,000.
What Does That Mean?
• The influencer is being paid in kind, not cash—but the tax treatment is the same.
• The €10,000 value of the promotional services is taxable income.
• The influencer must declare this amount and pay income tax on it.
• A formal agreement makes the transaction clear, but the tax treatment would apply either way.
Why This Matters
Revenue is paying closer attention to influencers and creators, especially those receiving PR gifts, brand deals or high-value perks like vehicles, tech, or travel. It’s not always black and white.
Without the right advice, it’s easy to:
- Miss registration deadlines
- Misvalue non-cash income
- Omit these supplies from VAT returns
What You Should Do
If you’re receiving gifts or perks in exchange for posts or promotion, it’s time to review your VAT position.
📞 Talk to us about how these rules apply to your brand collaborations and avoid an unexpected tax bill later.
