Taxation on Influencers
For some people, social networks stopped being entertainment and became their means of work. Those young people who used to make videos of themselves to have fun interacting with others, today are known as professional influencers and therefore the importance of knowing about Influencer Taxation.
Like any profession, there is an economic activity behind it that generates income and therefore, in accordance with the provisions of the Law, it is subject to taxation and must make its respective contribution.
The Directorate General of Taxes (DGT) now recognizes influencers within the field of advertising, due to the fact that they capture the public’s attention to promote a product or receive payment for their followers. So, as advertising professionals, they must comply with their tax obligations.
Tax obligations of influencers
First of all, for the economic activity of any influencer to be recognized, he or she must be registered in the Tax on Economic Activities (IAE).
In addition, they must make the corresponding census declaration, so that their professional activity is registered as an extension of the tax.
On the other hand, as far as Personal Income Tax (IRPF) is concerned, the monetary remuneration and the products offered belonging to other brands must be taxed as income from economic activity.
From a legal point of view, the products sent by brands for advertising purposes are considered income in kind, therefore, they must be valued according to their market price.
All this income constitutes the general IRPF taxable income, i.e., the sum of all income and income on which a tax must be paid. Although, it could be slightly different depending on the Autonomous Community where the influencer is located.
Finally, the taxation of VAT, or Value Added Tax, on influencers will be reflected as invoices for the services rendered and will depend on the rules established in the territory from which it originates.
Do Youtubers and Streamers also pay taxes?
According to the new considerations of the Law, YouTubers and Streamers perform activities similar to those of influencers, therefore, they also have tax obligations based on the nature of their profession.
This is why YouTubers must issue invoices to their customers where VAT is withheld at 21% of their income, regardless of the size of their channel. Streamers, on the other hand, must register as self-employed, and this slightly modifies their tax declaration.
As these are new professions and developed in a digital environment, the considerations made by the Spanish tax authorities seek to standardize their activity and compare it, as far as possible, with other professions. So that the contribution is as equitable as possible.
It should be considered that a YouTuber can earn money in many ways, both online and offline.
The main income in this profession comes from advertising concepts and visualizations, but they also receive benefits from promoting certain brands, collaborating in the media and attending events.
In addition, compared to other professions, they have an easier way to move around the national and international territory, so they can go to a place where taxes and contributions are lower, as Ruben Doblas Gurdensen, better known as El Rubius, did.
This behavior has recently generated a lot of controversy in the media and the freedom that influencers have to exercise their economic activity is being questioned.
In any case, virtual professions are growing stronger every day in our society. Therefore, it is to be expected that the Law will make modifications in order to include them in the list of taxpayers.