It was recently reported in the media: Social media influencers have been targeted by tax investigators. The suspicion of tax evasion is based on thousands of secured data records.
Intent or ignorance? Either way, the damage is immense. But how can this even happen?

Here we inform you about three tax traps that you should not fall into as an influencer:

Trap 1: Products provided are operating income!

Products from other companies that you promote and then keep are not tax-free gifts, but taxable business income - i.e. remuneration for your work.

The same applies to products that you give away to your followers!

Services such as beauty treatments or hotel stays that you receive free of charge and then advertise on social media must also be taxed as business income.

Trap 2: Civil clothing is not deductible!

As an influencer, you certainly spend a lot of money on your outfits. However, you cannot deduct the cost of civilian clothing as business expenses, as only typical work clothing is deductible, e.g. uniforms, protective work clothing, etc.

If you receive the clothing as a gift from other companies, you have no costs anyway and therefore no operating expenses. However, you do have operating income, as explained in Trap 1.

Trap 3: Rice costs are tricky!

You can only deduct travel expenses in full as business expenses if your trip was predominantly - i.e. at least 90 % - business-related.

In the case of mixed trips (e.g. private vacations with individual working days), you may only deduct the costs for the business part on a pro rata basis. It must be possible to clearly distinguish between the time portions.

So be sure to keep a travel diary and keep all invoices and receipts!

Remember: you are transparent online. The tax office can also track all your activities!

👉 Do you have questions about these and other online tax traps? Talk to us. We are also always well informed 😉:
www.wsb-berater.de/kontakt

#Influencers #Tax traps #Finance office #SocialMedia #Followers #WSB