On 26 September 2026, the Directorate General of Taxes (DGT) clarified that self-employed individuals and small businesses providing free products to influencers or content creators for promotional purposes must account for VAT on those goods. Even though no monetary consideration is received, the transfer of goods for promotional use constitutes a taxable supply deemed to occur at the open market value. The business must issue a corresponding invoice (which can be a simplified invoice) and report the output VAT in its periodic VAT return (Model 303).
Key Takeaways
- Deemed Supply Rules Apply: Free goods transferred for promotional purposes are treated as a supply of goods for VAT purposes, triggering output VAT liability.
- Valuation at Market Value: The taxable base is the open market value of the goods at the time of transfer, not the production cost.
- Invoicing Obligation: The supplier must issue an invoice to the influencer (or a simplified invoice if the influencer is a final consumer) and include the VAT in the relevant Model 303.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement