The Greek Independent Authority for Public Revenue (AADE) has imposed a significant tax penalty on an influencer for unpaid taxes and missing invoices related to commercial Instagram posts. The case, handled by the Directorate of Dispute Resolution (DED), concerns undeclared advertising activities carried out in 2019 through a company whose primary business was advertising services — specifically, managing influencer campaigns via a professional Instagram account.
322 Posts, 54 Untaxed
The audit found that the sole partner and manager of the company had posted 322 commercial posts on the professional Instagram account during 2019. While some were properly invoiced, authorities determined that 54 posts lacked the required fiscal documentation — despite clearly constituting business transactions. These untaxed posts were collectively valued at €81,500 (net of VAT), with an additional €19,560 in VAT due.
Total Tax and Penalty Bill Exceeds €70,000
Based on the findings, AADE levied:
- A €9,780 fine for failure to issue proper tax documents;
- An income tax adjustment of €28,083.52, plus a corresponding penalty of €14,041.76;
- VAT arrears of €19,560.
The total financial liability exceeds €70,000.
Why Were the Posts Considered Taxable?
The DED’s decision did not rely solely on the existence of the posts but on their content and structure — particularly hashtags and tags linking to advertised brands, mirroring those used in previously invoiced collaborations. The company argued that some posts were non-commercial: nine were claimed as barter exchanges (e.g., free products for promotion), eleven as giveaways, and 46 as personal moments unrelated to business. The DED rejected all claims.
It ruled that barter arrangements — where goods or services are exchanged for promotional exposure — constitute taxable economic activity, not gifts. Likewise, posts labeled as ‘personal’ were deemed part of a coordinated marketing effort, given their alignment with the company’s core business and the professional nature of the account.
How Was Value Determined?
To assess the monetary value of the untaxed posts, auditors referenced actual billing rates from the company’s own contracts and tax documents. They applied benchmark fees of €1,000 (plus VAT) per standard post and €2,500 (plus VAT) per giveaway post — establishing a defensible, evidence-based valuation method.