Accessories and clothing are not business expenses

Influencers and people with similar activities cannot claim expenses for accessories, cosmetics or clothing as business expenses either.

An established principle in tax law is that items that can also be used privately and services that also have a private character cannot be claimed as income-related expenses or business expenses. There are only exceptions to this principle in very specific cases or if a clear and objective division into a private and a professional part is possible. Because of this principle, an influencer failed with her lawsuit at the Lower Saxony Tax Court, with which she wanted to achieve the deduction of expenses for accessories and clothing as business expenses.

The plaintiff divided the expenses into a private share of % 60 and a business share of % 40. However, the court pointed out that it is not possible to separate the private and business spheres in the case of ordinary middle-class clothing and fashion accessories and dismissed the claim. According to the court, the use of the items is irrelevant, as the obvious possibility of private use alone means that they cannot be taken into account for tax purposes. Whether the items purchased were used partially or exclusively for business purposes is therefore irrelevant. In this respect, the profession of an influencer is no different from other professions.