"Nothing is certain except death and taxes," so the famous saying goes. It was penned (in a letter to a French scientist) by American philosopher, diplomat, and signatory of the US constitution, Benjamin Franklin.
But it appears that many members of the TikTok generation have missed the memo. Following reports that influencers in Germany have dodged taxes worth hundreds of millions of euros, the Ministry of Finance (Finanzamt) of the state of North Rhine-Westphalia has launched a website with the tax rules that content creators should know.
Indeed, if Franklin were to live in modern-day Germany, it can be imagined that he might update the quote along the lines of: "Nothing is certain except death and intimidating letters from the Finanzamt".
When is income earned from online content taxable?
Just like money earned from regular employment, income from influencer activities - including non-cash benefits like products, vouchers or gifts - is taxable in Germany.
It does not matter how the income in generated - be it through sponsorships, product placements, affiliate links, direct sales or otherwise.
The basic rules to know:
- If you regularly work as an influencer i.e. independently publish content with the intention of making profit, you need to obtain a tax number. You should contact your local tax office and fill out a questionnaire within one month of the start of your business.
- If your total compensation in one year is greater than the basic tax-free allowance, then you owe income tax. (The federal tax-free allowance is set at €12,096 per person in 2025).
- In most cases, influencer income is considered commercial. Therefore, if your annual income exceeds €24,500, you may also have to pay trade, or business, tax (Gewerbesteuer) to your city.
- Influencers are also often subject to value added tax (VAT), and therefore you may need to submit advanced tax returns to your local office throughout the year. You don't owe VAT on your influencer income if your total income in the previous year (2024) was below €25,000, and remains below €100,000 this year.
Importantly, ignorance of the law is not a valid excuse for tax avoidance.
You can find more information here. Keep in mind that tax rules can vary between regions, especially regarding local taxes like the trade tax mentioned above.
READ ALSO: Do employees in Germany have to declare tax on a side job?
Ongoing investigations
"Influencers and content creators are a growing and important industry," North Rhine-Westphalia's Finance Minister, Marcus Optendrenk (CDU), told DPA.
About the new webpage with information for influencers he said, "Our aim is to inform, educate and be a partner for the people who are building their professional future here, or are already firmly established."
The launch of the webpage follows reports from earlier this summer that alleged that a large number of content creators in Germany were evading taxes on their income earned online.
A nationwide analysis by the Bavarian State Tax Office, and reported by various media outlets, found that social media sales in Germany amounted to a total of €1.4 billion between 2024 and 2025.
Follow-up reports suggested that the state of North Rhine-Westphalia was investigating around 200 content creators for tax evasion.
READ ALSO: The essential information to include on an invoice in Germany
DPA reported recently that tax investigators in the state were examining around 6,000 data records, which were said to result in alleged tax damage by influencers of around €300 million.
Berlin tax investigators are also reportedly looking carefully at thousands of data records relevant to influencers' business activity.
Comments