Social media as a tax trap? Influencers in the sights of the tax authorities

The world of influencers is booming: millions of followers, growing influence - and in some cases considerable income from product placements, subscriptions and digital content. In North Rhine-Westphalia, one of the most comprehensive investigations into social media actors is currently underway.

The accusation: massive tax evasion through undeclared online income.

In this article, you can find out why influencers are currently being targeted by tax investigators, which income is relevant for tax purposes - and how you can act in good time before it's too late.

1. Why is the influencer industry now the focus of tax investigations?

The NRW Tax Investigation Department has set up a specialized project group at the Tax Office for Criminal Tax Matters and Tax Investigation to counteract the increasing non-taxation of social media income. This is due to conspicuous discrepancies between the public presence and tax-declared income of influencers on platforms such as TikTok, Instagram, YouTube and OnlyFans.

According to media reports, the potential tax loss amounts to up to 300 million euros. Particularly problematic: the frequent lack of tax classification of income from streams, fan subscriptions, product placements or affiliate links.

The tax authorities are increasingly relying on digital evaluations, comparisons with payment service providers and international cooperation. AI-supported systems are also being used to identify suspicious profiles and transactions.

2. What exactly are the authorities accusing the influencers of?

The focus is particularly on the following issues:

• Undeclared income from advertising contracts and product placements, monetization via TikTok, YouTube, etc., membership fees, tips, and pay-per-view content on platforms such as OnlyFans or Twitch, affiliate marketing, and sponsorship
• Missing or insufficient tax records
• Use of foreign accounts or online payment services (e.g., Revolut, PayPal) without proper tax treatment
• Partial concealment through third-party contracts, agencies, or foreign service providers

Important: Non-cash benefits (e.g., products received free of charge) must also be reported for tax purposes if they are used for advertising purposes.

3. When are influencers liable for tax?

The problem: Many content creators are unaware that they are considered entrepreneurs for tax purposes—with all the associated obligations.

This means that there may be points of contact with various types of taxes, whereby different requirements must be examined. The most relevant here are income tax, trade tax, and sales tax. In addition, there may also be other reporting and declaration obligations. It is clear that a multitude of topics come together that need to be explicitly examined, particularly due to the large number of different sources of income.

The rule of thumb is: as soon as income is generated regularly with the intention of making a profit, a tax liability arises – regardless of the reach or platform.

4. What are the consequences of violations?

Those who fail to fulfill their tax obligations risk more than just having to pay additional taxes:

• Retroactive tax assessment for up to ten years
• Interest (6% per annum) and late payment penalties
• Criminal proceedings for tax evasion (Section 370 AO)
• Search of residential and business premises
• Account seizure and asset recovery

Tax investigators are now targeting creators who attract attention through publicly visible sources of income or advertising partnerships but who submit no tax returns or incomplete tax returns. Platform data, financial flows, and social media activities form the basis of the investigations and will become increasingly relevant in the future.

5. Voluntary disclosure as an opportunity – but not a free pass

Anyone who has failed to declare income or has declared it incorrectly can still pull the ripcord with a voluntary disclosure exempt from punishment (Section 371 AO) – provided certain conditions are met:

• The voluntary disclosure must be complete, timely, and accurate.
• All relevant years and income must be fully disclosed.
• No preliminary investigation may have been initiated.
• The tax liability must be paid in full.

Voluntary disclosure is a sensitive process that can easily fail without professional guidance—especially in cases involving international cash flows or undocumented income. If the voluntary disclosure is incomplete or late, there is a risk of significant criminal consequences despite the disclosure. In such cases, it is particularly important to take a close look and carefully review the years in question.

6. Conclusion: Transparency is not a trend, but a duty

The days of the “gray area” for online income are over. Anyone who works professionally as an influencer, creator, or streamer today must act like a business when it comes to taxes: with accounting, tax returns, and strategic consulting. Especially for influencers who have experienced rapid growth, it is important to adapt internal processes to ensure accurate documentation and subsequent declaration.

Those who ignore their obligations risk not only financial claims, but also their good reputation and criminal consequences that should not be underestimated.

Are you a creator, influencer, or do you earn money online with digital content? 
Then you should manage your tax obligations just as professionally as your reach. We support you discreetly, legally compliant, and with a clear view of the dynamics of the platform economy.

Get advice now.