Influencers are regularly sent product or given a free service from suppliers.

Is the product/service treated as Income or a Gift in the hands of the Influencer?

It depends on why the product/service is provided, and what the influencer does with it.

Income

The merchandise is treated as taxable income (a non‑cash payment) where:

– There is an agreement or understanding that the influencer will promote, review, tag or feature the product

or

– Even if unsolicited, the influencer decides to promote it (posts, tags, etc.) in return for the item.

In those cases, the open market value of the goods is taxed as trading/professional income (like a fee paid in kind).

Examples from Revenue practice:

– Influencer receives €1,500 of make‑up products for promoting a brand – full €1,500 is taxable income. 

– Free stay in a spa in return for social media promotion – value of the stay is taxable income. 

– Regular “brand ambassador” arrangements – free products, accommodation, etc., all taxable as income.

Gift

Free product/service may be treated as a gift for tax purposes, if all of the following apply:

– The goods are unsolicited (no prior agreement or expectation)

– The influencer is under no obligation to do anything in return

and 

– The influencer does not in fact provide any promotion or service for the sender

In this case there is no charge to Income tax.

Depending on the value of the gift there may be an exposure to Gift Tax (CAT).

For typical small items this is rarely an issue as gifts with a value below 3k from a supplier are ignored for CAT purposes (Small Gift Exemption).

Revenue guidance also confirms:

– Small unsolicited items not promoted can generally be treated as gifts/no income tax.

– Where such items are simply donated to charity and not used or promoted, there is usually no income tax impact.

Mixed situations / practical point

If an influencer receives lots of products and only some are promoted, it is usual to:

  – Treat the promoted items as taxable income (value included in accounts)

and 

  – Treat the unpromoted, unsolicited items as gifts (no income tax), subject to CAT only if unusually large.

Where items are income (i.e. payment in kind), they may be business stock or expenses only if the influencer then incurs a real cost or uses them wholly and exclusively for the trade (e.g. prizes they buy to give away, not those they received for free).

Revenue have recently been focussing on Influencers and other media contributors, many have been found not to be compliant often because of lack of knowledge rather than deliberate behaviour.

Note this does not constitute tax advice and is meant purely to illustrate some of the issues which may arise for the Taxpayer.