For many companies, influencer marketing has become a staple of their marketing mix. This makes sense, because with the right influencer, you can expand your reach and associate a familiar face with your brand. But when you, as a client, engage influencers, you also take on additional tax and administrative obligations.
What formalities do you need to complete, and what should you pay special attention to? We've listed the most important points for you to consider.
Under what legal status does your influencer work?
The obligations that apply to you as a client depend primarily on how the influencer operates.
An influencer may provide his or her services under the following four articles of incorporation:
| The Status of the Influencer | What does this mean for you as a client? |
| Self-employed (sole proprietorship) or corporation | The influencer — or his company — bills directly their services, including VAT. If the influencer has annual revenue of less than €25,000 (excluding VAT), you can use a exemption scheme*.
Do you use self-billing? In that case, you issue the invoice in the influencer’s name and also pass on the VAT, unless the exemption applies. Tip: Also check whether the influencer is properly registered with the CBE and are lists company information on his website and social media. |
| Employee | You follow the standard labor law provisions: a DIMONA declaration, an employment contract, and the required social security contributions. As an employer, you pay the employer’s RSZ contribution and file a Sheet 281.10 on. |
| Flexi-job | You take out a written framework agreement and files a DIMONA report. You pay a social security contribution of 28% and take into account a minimum and maximum wage (up to 150% of the sectoral minimum wage) and a tax-free threshold of 18,000 euros per year for the influencer. Here, too, you must file a Sheet 281.10 on. |
| Occasionally active | Does the influencer only collaborate with you occasionally, without any regular professional activity? In that case, the following applies: No requirement to issue invoices or receipts as long as the reimbursement per person per year no more than 250 euros comes out. Above that, you make a sheet 281.50 on. |
*Service providers who take advantage of the small business scheme are not required to charge VAT. Please note, however, that even businesses that wish to take advantage of this scheme must still register for VAT.
Reimbursement over 250 euros? Fill out the appropriate form
Does the annual compensation for an occasional influencer exceed 250 euros? If so, you are required to sheet 281.50 to draw up.
When you pay the influencer in cash, you must amount paid to be included in the record.
Do you pay the influencer in goods or services? Then take the actual value of these goods or services, minus any out-of-pocket expense the influencer may have paid.
Please note: this also applies to products or services that you sends unsolicited, are, in principle, for the influencer taxable — even if he or she never promotes them. Keep that in mind when you send out PR packages.
Less than 250 euros? Be sure to keep your receipts
If the compensation per influencer remains below 250 euros per year, then you are exempt from the requirement to submit a form, regardless of whether the influencer considers that amount to be professional income.
That doesn't mean you can simply claim these expenses as business expenses: you still have to be able to proofs. Acceptable forms of evidence include:
- proof of payment;
- a receipt or acknowledgment of receipt that identifies the recipient and describes the service provided;
- proof that the service was actually provided.
If the influencer is truly only active on an occasional basis—that is, not as a sole proprietor, a company, an employee, or a flexi-jobber—and the compensation remains below 250 euros, then a invoice Replace the invoice. In that case, have the influencer sign a document stating that the payment does not count as professional income for him or her.
Are you paying with products or services? Don't forget the VAT
If you compensate an influencer not with money, but with products or services, there’s an additional point to consider: the btw. The appropriate treatment depends on the situation.
Explanation of two common situations:
Scenario 1: You provide the influencer with products or services on a permanent basis in exchange for advertising
- The influencer issues an invoice for the advertising services provided (including VAT, unless an exemption applies).
- As the client, you invoice the influencer for the product or service (including VAT).
Scenario 2: You provide the influencer with products on a temporary loan basis in exchange for promotion
- The influencer issues an invoice for the advertising services provided.
- As the client, you will invoice the client for the cost of the assignment (including VAT).
The specific VAT treatment can be complex. Therefore, consult a tax expert for the correct approach.
In a nutshell: your checklist
- First, determine the legal status under which your influencer works.
- For occasional collaborations, keep an eye on the 250-euro-per-year limit.
- Be sure to create the correct form (281.50 or 281.10) in a timely manner
- Keep your supporting documents, even if you don't have to fill out a form.
- Are you paying with goods or services? Determine the correct VAT treatment in advance—and don’t forget about unsolicited shipments.
Conclusion
Influencer marketing offers many opportunities, but there are also important tax considerations. The right approach depends on the statute of the influencer and the nature of the compensation.
A tax-compliant framework protects you from disputes with the tax authorities or the labor inspectorate.
Do you want to make sure you're working with influencers in a tax-compliant manner?
Please contact our pro experts. We'd be happy to work with you to determine which approach best suits your situation.