Tax Treatment for Social Media Influencers in Ireland: What You Need to Know
The rise of social media has transformed how people earn income, and Irish tax authorities have moved decisively to ensure influencers meet their obligations. With Revenue issuing specific guidance and the Competition and Consumer Protection Commission (CCPC) actively enforcing disclosure rules, the days of treating influencer income as a tax-free hobby are firmly over.
All Income Is Taxable – Even Non-Cash Benefits
The principle is straightforward: if you earn income from social media activities, it is taxable. This applies whether your influencer work is full-time, part-time, or occasional, and whether it is your main source of income or a side project.
Revenue has made clear that taxable income covers all forms of compensation: subscriptions, advertising revenue, sponsorship fees, brand ambassadorship payments, and endorsement deals. Importantly, this extends beyond cash payments to include non-monetary benefits.
Free goods, services, trips, vouchers, and discounts received in exchange for content, reviews, or promotional posts must all be declared at their fair market value. That complimentary hotel stay in exchange for Instagram stories? The designer handbag sent for an unboxing video? The restaurant meal provided for a review? All taxable. In an Irish context, this could just as easily be a hotel sponsorship linked to a local event or tickets to a GAA match in return for coverage.
Trading Income vs. Miscellaneous Income
How influencer income is classified determines both tax treatment and the ability to deduct expenses. The key distinction is between Case I (trading income) and Case IV (miscellaneous income).
If you are engaged in a commercial activity with regular income and the intention of making profit, your earnings will likely be taxed as Case I trading income. Consider a full-time travel blogger who posts consistently across multiple platforms and earns from sponsored posts and affiliate marketing. That ongoing, frequent activity with profit motive clearly constitutes a trade.
In contrast, if you occasionally post hiking photographs online and sell a few prints each year, then your sporadic, non-commercial activity would be treated as Case IV miscellaneous income. This distinction is significant when it comes to expense deductions.
What Expenses Can You Deduct?
For those operating as a trade, expenses can be deducted if they meet three criteria: they must be revenue (not capital) in nature, incurred wholly and exclusively for trade purposes, and not specifically disallowed by law.
The "wholly and exclusively" test is particularly strict. If an expense serves both business and personal purposes, the entire expense is disallowed. This means influencers cannot deduct costs for clothing, hair, or makeup, even if these enhance their on-camera presence. The rationale is that these items serve a dual purpose and would be purchased regardless of business activity.
Deductible expenses typically include equipment directly used for content creation, marketing costs, and business-related travel. If you are operating as a trade, you may also claim capital allowances for equipment like cameras and lighting.
However, if your activity is merely occasional and does not constitute a trade, no capital allowances are available.
VAT Registration Requirements
Beyond income tax, influencers carrying out business activities must consider VAT obligations. Once turnover exceeds €37,500 for services or €75,000 for goods, VAT registration becomes mandatory.
Revenue’s July 2025 guidance confirmed there is no special VAT regime for influencers. Taxable supplies include sponsored posts, affiliate marketing income, subscription fees, merchandise sales, and, importantly, non-monetary benefits where there is an obligation to promote. For these in-kind benefits, VAT is calculated on the market value received.
The exception is unsolicited gifts with no promotional obligation, which generally fall outside VAT scope. However, distinguishing between a genuine gift and a quid pro quo arrangement requires careful documentation.
Record-Keeping Is Essential
Irish influencers must maintain detailed records of all income and related expenses, including the value of non-cash benefits received. This documentation is vital not only for tax compliance but also for consumer protection purposes.
Tax guidance overlaps with advertising disclosure requirements enforced by the CCPC. Under the Consumer Protection Act 2007, influencers must clearly label all commercial content with #Ad or equivalent disclosures.
Undeclared benefits may constitute both a tax violation and undisclosed advertising, compounding legal exposure. The August 2025 data-sharing agreement between the CCPC and the Advertising Standards Authority means regulatory bodies now coordinate enforcement efforts, increasing scrutiny on influencers who fail to meet obligations.
Business Structure Considerations
Influencer activities may be conducted as a sole trader, partnership, or through a company. Each structure has different tax implications, reporting requirements, and liability considerations. As an influencer business grows, professional advice on the most suitable structure becomes increasingly valuable.
The Bottom Line
Irish influencers are firmly within the scope of business and tax law. Revenue’s message is unambiguous: if you are earning, you are likely trading, and full tax compliance is required. The integration of tax enforcement with consumer protection regulation means non-compliance carries both financial and reputational consequences.
Influencers should audit their income sources, maintain comprehensive records, understand which expenses are deductible, and seek professional advice when uncertainty arises. In this maturing regulatory environment, treating influencer work as a proper business is not just good practice—it is a legal requirement.
If you are unsure how these rules apply to your situation, NKC can guide you through the requirements and help ensure you remain compliant.