Tax on Freebies: Influencers Warned by Revenue

Here’s a breakdown​ of the rules regarding declaring gifted goods, ​based ⁣on the provided text:

Key Takeaways:

* Gifted items are taxable income: If you receive somthing⁤ for free and ⁤promote it in any way (e.g., on social media), it’s considered ​taxable income. There are no special exemptions for creators/influencers.
* Gift Tax‍ Applies Even Without Promotion: Even if you don’t post about a gifted item, it may be ⁤subject to gift ⁤tax under capital acquisitions rules.
* Gift Tax Thresholds:

* Gifts over €3,000 from a single donor in ⁤a year are taxable at 33%.
* There’s a lifetime exemption of €20,000 for those in “Group C” – this category typically applies to influencers receiving goods from brands.
* Self-Employment Registration: If you earn any ‌income from ⁣social media (including the value of gifted items you promote), you must register‍ as⁢ self-employed, file annual tax returns, and keep accurate financial records.
*⁣ VAT Registration: You need to register for VAT ‍once your income from services exceeds €42,500.
* Proactive Compliance is Best: It’s strongly advised to contact Revenue (the irish tax authority) before they contact you.
* Undisclosed‌ Advertising is a Problem: The Advertising Standards Authority (ASA) is seeing increased complaints from ‍the public about influencers ⁤not clearly disclosing when they are advertising.

in short: Treat ‌gifted ‍items ⁤you promote as income, and be aware of gift tax rules even for items you don’t promote.