Tax Authorities: TikTokers in the crosshairs–The AADE’s special algorithm and the team scanning the internet

The tax authorities are turning their attention to influencers, particularly TikTokers, who earn income from their social media activities but fail to report it. With the rise in profits from advertising collaborations, sponsorships, and product sales through platforms like TikTok, Greece’s Independent Authority for Public Revenue (AADE) is intensifying inspections to identify cases of tax evasion.

Although the main income for influencers often comes from deals with companies for specific posts, many also join programs like the Creator Fund to earn additional income. Beyond advertisements, TikTok offers several built-in payment tools, such as virtual “gifts” and the Creator Fund, aimed at users with at least 10,000 followers and 100,000 views in 30 days. Additionally, through the TikTok Pulse program, the platform shares ad revenue with creators. TikTokers can also earn virtual “gifts” during live broadcasts, which can be converted into cash.

These gifts range from $20 to $300 per live, and some users can earn up to $34,000 in a single month.

According to Greek law, influencers’ earnings from promoting and advertising products, as well as income from TikTok, are considered business revenue. Therefore, TikTokers are required to officially register their business activities and comply with all tax obligations, including VAT, income tax, and the myData platform.

TikTokers who fail to declare their earnings face severe penalties, such as fines and potential criminal charges. Authorities use modern tools and technologies to track such cases by investigating financial transactions and monitoring the movement of money in users’ bank accounts.

AADE has created a special task force to track money laundering activities on social media, “ghost” businesses, and influencers or celebrities who hide their income. This small team of 7-8 people operates under the Directorate of Operational Audit Planning (DIESEL) and is called the “Department for Prioritization of Audit Cases and Detection of Non-Compliance Trends.” The team conducts extensive research on the internet and social media, targeting taxpayers who engage in business activities without registering their work, keeping records, issuing tax documents, or reporting their earnings.

In addition to tax violations, the audits extend to purchases, travel, real estate, and influencers’ lifestyles, aiming to verify whether their financial transactions from product or service promotion are accurately declared. Specifically, they record photos, dates, and social media posts to cross-check the influencers’ financial status.

The ultimate goal of AADE is to ensure that digital entrepreneurs comply with tax laws and pay their fair share of taxes.