Monetization means that videos are advertised on platforms such as YouTube. This creates advertising revenue, which YouTube then shares with the video creator. Since such income basically leads to a business operation, these are also taxable. Therefore, the income from the monetization of videos must also be stated in the tax return. For this purpose, the plants G and EÜR are used. But also the expenses related to the production of videos are relevant here. Because it can be counted against the income from monetization. This reduces the taxable amount.

Why do influencers pay less taxes?

1. The activity on YouTube

If you create and upload videos on YouTube, you can monetize them there. The monetization of the videos from YouTube before and partly also during the playback of the video is advertising. Subsequently, YouTube pays the resulting advertising revenue proportionally to the ‘creator’ – the video creator. YouTube calculates the earnings of each individual creator based on the clicks and playback time on the videos.

2. taxation of advertising revenue from YouTube

Furthermore, the income generated by monetization is of course taxable. Similar to the streaming income, there is also a commercial enterprise here. Here we refer to the remarks in our similar article: Streaming: Taxation of revenue.

2.1. Taxation of monetization

Because a business enterprise exists here because the conditions such as self-employment, repetition intention and profit intention are fulfilled. Therefore, it can be assumed that the creator activity on YouTube will be repeatedly executed and will probably also lead to a (albeit small) profit.

In the tax return, this income is therefore to be indicated in Annex G or the corresponding Annex EÜR.

2.2 Indicate operating expenses

If you have listed your income through the monetization of your videos and indicated it in the tax return, you should also indicate your expenses incurred. Operating expenses are all expenses and costs incurred in connection with the video creation / recording. For example, in addition to expenditure on hardware and software, this could also be costs for graphics, videos and music. In the case of a proportionate private and operational use, a percentage division may be required for this purpose.

Similar to YouTube, the monetization of videos and clips also plays a role on other platforms. Tiktok is another well-known and young example of monetization. Here, too, there is the possibility of monetizing videos. This also makes it possible to generate revenues depending on the calls. Here, too, the tax conclusion applies that monetization establishes a business.