We are in a world of change, and this naturally affects the new professions adapted to the technological changes we are experiencing in our daily lives and in the social networks that have been with us for several years.
Within these new digital professions, there are influencers and content creators (youtubers, Instagrammers, tiktokers, bloggers, etc.). The problem is that many of those who practice these new professions do not know what their tax obligations are for their activities.
If influencers and content creators carry out their activities continuously and regularly as individuals, they must register as self-employed persons with the social security and tax authorities for the activity they carry out. Depending on the nature of their activity, they must register under one or more headings, as there are different categories for activities such as generating advertising income or making videos.
When declaring your income to the tax authorities, you should bear in mind that you must declare all income earned in different ways, such as:
– Advertising in videos.
– Paid memberships (e.g. Twitch subscriptions).
– Superchat and superstickers (virtual stickers,that users can buy during a live YouTube during a live YouTube broadcast).
– Direct sponsorship by brands in connection with the transfer of your image rights, including Payments for participation in promotional events.
– Any gifts (e.g. if a brand gives you a product to write a review about it, making it more popular with your followers) and thus make it more popular with your followers).
It should be noted that Spanish resident influencers who earn income abroad are taxed in Spain on their worldwide income. In these cases, however, it is necessary to check whether the income from the activity outside the Spanish territory must also be taxed abroad if it is exercised there. In each individual case, it must be checked which taxation is applicable.
As far as deductible expenses are concerned, all materials and instruments necessary for carrying out the activity (video cameras, computer equipment, marketing, etc.) can be deducted. However, expenses such as clothing are not deductible, even if you are an influencer with a focus on fashion.
With regard to VAT, it should be noted that your activity is usually subject to the general VAT of 21% and is not exempt from it. However, as it is highly likely that the platform or the creators’ or influencers’ clients are located in a Member State of the European Union, it is advisable to register in the register for intra-Community operators in order to be able to issue VAT-exempt invoices to clients who are tax resident in a Member State.
Therefore, if you as an influencer or content creator do not comply with your tax obligations when developing your economic activity, you can get into trouble with the authorities and may even face fines and penalties.