Greek influencer fined over 70,000 euros for undeclared social media income

A prominent Greek influencer faces a hefty fine exceeding 70,000 euros in taxes and penalties for undeclared income from Instagram posts. The Dispute Resolution Directorate upheld the tax authority's decision regarding non-invoiced commercial advertisements.

The case, concerning the 2019 tax year, involved a company operating as an advertising agency through which the influencer managed a professional Instagram account. Tax authorities initiated the audit as part of a broader initiative targeting Greek influencers on social media.

During the inspection, officials analyzed the influencer's posts, company accounting records, private agreements, and tax documents. They identified 322 posts on the professional account, determining that 54 of them lacked the required tax documentation despite being considered business transactions. The undeclared posts were valued at 81,500 euros before VAT, with an additional 19,560 euros in VAT, a 9,780 euro fine for not issuing tax documents, and 28,083.52 euros in income tax difference with a 14,041.76 euro penalty.

The company argued that some posts were not taxable transactions, citing barter deals, giveaways, and personal moments. However, the Directorate rejected these claims, stating that exchanges of goods or services for advertising constitute economic transactions. Posts presented as personal were found to have characteristics of organized product promotion, aligning with the account's professional nature. The value of these transactions was calculated based on the company's own minimum charges from private agreements and tax documents, with posts valued at 1,000 euros and giveaways at 2,500 euros, plus VAT.