Likes, luxury & lies: How social media stars trick the state
They show off their dream villas in Dubai on Instagram, present designer handbags, sports cars and private jets - and earn tens of thousands of euros per month. But many of these influencers forget one crucial hashtag: #taxliability.
Now the state is striking back: according to the State Office for Combating Financial Crime (LBF NRW), around 300 million euros in taxes have been evaded in North Rhine-Westphalia - just by influencers. Tax investigators are currently analyzing 6,000 data records from social media platforms and have already opened around 200 criminal proceedings. And this is just the beginning.
No idea or criminal energy?
Sure, you can turn a blind eye to a few free creams and discount codes at the tax office. But when it comes to month-long campaigns, luxury trips at PR expense and five-figure monthly sales, the fun stops.
Stephanie Thien, head of the LBF NRW, puts it in a nutshell: "It's not uncommon for an influencer to earn tens of thousands of euros a month but not even have a tax number."
There can be no question of being overwhelmed by fame - rather, it is a matter of "high criminal energy". Particularly perfidious: as their success grows, many influencers simply sign off abroad - Dubai sends its regards. There's sunshine, tax exemption and hardly any consequences.
Tax investigators think digitally: influencer team against Insta tax tricks
NRW is the first federal state with its own authority for digital tax tracking. The LBF's specially established influencer team analyzes story ads, sponsorship deals, discount codes and product links. Even stories that disappear after 24 hours are now recorded - the methods are complex, but apparently effective.
Other federal states are now also taking a closer look. Because one thing is clear: where millions are made, the state wants to cash in - and rightly so. NRW Finance Minister Marcus Optendrenk (CDU) explains: "Large-scale tax evasion occurs wherever money is made on a large scale."
Influencers are entrepreneurs - not a legal vacuum
The most important duties for influencers? Quite simple:
- Apply for a tax number as soon as income is generated
- Correctly declare income from advertising, cooperations & affiliate links
- Observe VAT liability - even for digital products or paid stories
- Inform the tax office, even if residence or income is transferred abroad
Those who ignore this risk not only back payments, but also prison sentences for serious tax evasion. What's more, the authorities now have a good sense of how reach and income behave. Anyone who shouts "100k per month" on social media but declares zero euros to the tax office will be caught faster than the algorithm can think.
Insta-gloss without a tax office is fraud - not business
We say quite clearly: influencers are not the problem - tax fraudsters are. Anyone who converts reach into revenue is running a business. Period. And the same rules apply as for any other entrepreneur.
The excuse "I didn't know you had to pay tax on that" no longer works - especially not with a Chanel bag and Lamborghini in the feed. The fact that many content creators are apparently deliberately emigrating to Dubai or Cyprus to escape the taxman shows how brazenly some are exploiting this system.
The LBF influencer team is long overdue - and hopefully will soon be a role model for the whole of Germany. After all, anyone who earns millions must also do their bit for society.
Are you an influencer and unsure about your tax obligations? Get advice from our experts now and avoid costly mistakes!
to the lawyerAt a fixed price of 169 EURO (gross)
