Influencer taxes: gifts, barter, VAT and the form of activity
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Taxes are a topic influencers often find out about too late. The State Tax Inspectorate (VMI) has published a separate explanation of influencers' tax obligations, which says clearly: not only money but also goods or services received for advertising are income.
In this part of the guide – the main points of VMI's explanations: how gifts and barter are taxed, which expenses can be deducted and when a VAT obligation arises. This is general information, so for a specific situation it is worth consulting an accountant.
In short
- Goods or services received as remuneration for advertising are considered income in kind and are taxed as self-employment (individuali veikla) income.
- When self-employed, you can deduct actual expenses or 30 % of income without proof of expenses.
- Registering as a VAT payer is mandatory when, over 12 months, remuneration for services subject to VAT exceeds 45 000 €.
Gifts and barter are income
VMI states that self-employment income includes any income received in the course of self-employment, including income received other than in money. When an influencer is paid for services in goods or services, they are considered to have received income in kind. It is taxed and declared in the same way as income in money.
In other words, if you received a cosmetics set, a trip or a phone for a post, their value is your income.
Form of activity
| Form | Suited to |
|---|---|
| Self-employment under a certificate (individuali veikla pagal pažymą) | The most common choice when starting out and when volumes are small |
| Small partnership (mažoji bendrija) or private limited company (UAB) | When volumes are larger, you work with a team or want to separate business and personal funds |
Which form is suitable is explained in the ACS.lt article “Self-employment: certificate or business certificate”, and income tax can be calculated with the personal income tax (GPM) calculator.
Which expenses can be deducted
VMI states that a self-employed influencer can choose: to deduct expenses actually incurred, supported by documents and related to the activity, or instead of them to recognise as allowable deductions an amount equal to 30 % of the income received. Actual expenses may be, for example, filming equipment, rent of premises, the services of video editors or photographers – if they are related to the activity and you have the documents.
VAT
According to VMI's explanation, an influencer must register as a VAT payer when, over the last 12 months, remuneration for services or goods subject to VAT supplied within the country exceeds 45 000 €. The obligation may also arise in other cases – for example, when acquiring goods from other EU countries, if the 14 000 € threshold is exceeded, or when income is added together with the income of controlled companies.
What to keep
Documents you may need
- contracts with advertising clients that clearly state the product, the remuneration and the payment terms;
- invoices for the services provided;
- documents confirming the value of goods received;
- proof that the advertising was published: screenshots, links, reach reports;
- expense documents, if you deduct actual expenses.
Affiliate commissions
Commissions from affiliate programmes are also self-employment income. track.lt payouts are made to a bank account, and the payout history is visible in the affiliate account, so the income is easy to enter in your accounts.
Frequently asked questions
Are gifts received by an influencer taxed?
Yes, if they are remuneration for advertising. VMI treats them as income in kind, which is taxed as self-employment income.
When does an influencer become a VAT payer?
When, over 12 months, remuneration for services or goods subject to VAT in Lithuania exceeds 45 000 €, and in some cases even earlier.
Can expenses for filming equipment be deducted?
Yes, if you choose actual expenses and they are related to the activity and supported by documents. Otherwise, the 30 % of income deduction can be applied.
Sources
- Valstybinė mokesčių inspekcija. Mokestinės prievolės, susijusios su influencerių (nuomonės formuotojų) veikla
https://www.vmi.lt/evmi/mokestines-prievoles-susijusios-su-influenceriu-nuomones-formuotoju-veikla