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 €37,500. 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.
Example:
You receive €500 worth of skincare products and agree to promote them on Instagram. This is treated as €500 of income, and if you’re VAT-registered, €115 VAT (23%) must be accounted for, even if no money changes hands.
This value also counts toward your VAT threshold, which could trigger registration earlier than expected.
Why This Matters
Influencer income is often a mix of cash and goods, and many people in this space are unaware that they may be breaching VAT rules. Revenue’s guidance aims to close that gap and non-compliance could now trigger penalties or audits.
Key takeaways:
- PR gifts are not tax-free if there’s an obligation to post.
- EU-wide income over €10,000 may require OSS registration.
- Platforms issuing invoices on your behalf must follow strict self-billing rules.
- Proper VAT invoicing, returns, and record-keeping are now essential.
How We Can Help
VAT for influencers is no longer a grey area, but navigating it can still be complex. Every influencer has a different mix of income streams, and one-size-fits-all advice simply doesn’t work.
As accountants and tax advisors, we help:
- Review whether you should register for VAT
- Calculate VAT on non-cash or mixed income
- Ensure your invoicing and records are Revenue-compliant
- Assist with OSS registration for EU income
- Handle VAT returns and reporting
Our Advice
If you’re earning income through social platforms or brand deals, now is the time to review your VAT position. Ignoring it could result in backdated liabilities, interest or penalties.
Contact us today for a VAT health check or to discuss your influencer income in confidence.
