Influencers and taxes

Content creators. They are everywhere on social media (Instagram, TikTok, YouTube ...). They have thousands of followers, who follow their every move. They often recommend products and services via their platform, in the hope of influencing their followers - consciously or unconsciously - to buy these products or services.
But being an influencer is not a harmless pastime without any obligations.

Influencers are entrepreneurs

First of all, content creators who regularly post advertisements on their social media channels are entrepreneurs.

They must register as an enterprise with the Banque Carrefour des Entreprises (Banque Carrefour des Entreprises), the Belgian Companies’ House, and they must list their business number, the address of their business and an email address on their social media channels as well as on their website, if they have one. They can do this at the bottom of their website or under ‘contact’.

Content creators who do not want to post their home address, are advised to register with a business centre so that they can post the address of the business centre.

This information allows consumers and public authorities to easily identify and contact the influencer in case of problems. Content creators whose activities have not registered in the BCE, but who still work as influencers are guilty of work illegally which is a criminal offence.

Personal income tax

The income obtained by an influencer can qualify either as professional income or as miscellaneous income.

Miscellaneous income

Income constitutes miscellaneous income when it is the result of an occasional activity, for which they have not set up an entire organisation, rather as a hobby. Miscellaneous income must be declared in the personal income tax return in part 2, under code 1200-61 ; they can deduct expenses under code 1201-60. Such income is taxed at a flat rate of 33%. Expenses incurred can be deducted.

Professional income

When the activity is more professional, the remuneration of their work will be taxed as professional income. This means that, after deducting expenses, they are taxed at the progressive rates.

The Belgian tax administration looks at the actual circumstances to determine how the income is taxed. E.g., if the content creator receives commission fees through an
intermediary or agency, then the influencer is aiming to organise their activity so that the income falls under professional income.
Free products or services

Often, content creators expect to receive free products or services in exchange for their advertising. Such free products or services are also ‘income’ as far as the taxman is concerned. The finance minister considers that such compensation opportunities are a taxable benefit in kind. The taxable value is the normal purchase value for the good or service. This amount should be included in the income tax return as miscellaneous income or as professional income.

VAT

An influencer who regularly (daily, weekly or monthly) and independently provides services for the exercise of an economic activity is liable to VAT. The content creator must register as a VAT-payer. He must then issue invoices with VAT and pass this VAT on to the State. He can then deduct and recover the VAT he paid on purchase invoices in his quarterly or monthly VAT returns.

If his annual turnover is less than €25,000, he can be exempt from charging VAT. He must still register as a VAT payer, but he does not have many other VAT obligations: he must not charge and pay VAT and he must not file monthly or quarterly VAT returns.