According to the Agreement between True Followrs and the Influencer, the Influencer must send an invoice to True Followrs for services provided for the use of the electronic platform after receiving periodic statements from True Followrs. The periodic statement is calculated according to the Agreement so that the statement is based on payments received from Followrs for access to the Influencers in a specified period.
Settlement is then made between True Followrs and the Influencer according to conditions mentioned in the Agreement for the income that the Influencer has received from private Followrs after the agreed period.
It is the registered Influencer’s own responsibility to clarify VAT liability in connection with the sale of the services referred to in the Agreement, which may be liable to VAT for e.g. advertising revenue. We therefore recommend getting questions about possible VAT liability and VAT registration etc. clarified with the local authorities.
Influencer is fully responsible for any VAT-related costs associated with their subscriptions and overall engagement on True Followrs, and responsible for such costs being paid accordingly.
True Followrs therefore has no responsibility or is in any way part of any VAT payments from Influencers. It is the Influencer’s full responsibility to comply with any and all applicable legislation, including being registered and paying applicable VAT in each and every country where the Influencer resides or is established.
The income received after invoicing for the delivery of services to True Followrs’ website is – apart from Influencers established in Denmark – not taxable to Denmark and in all cases according to Danish tax law not an expression of an employment relationship with True Followrs. This means that True Followrs is not responsible for withholding tax from Influencers’ income. We therefore recommend clarifying income taxation with the tax authorities in the country in which the Influencer is resident or established.
The Influencer thus has full responsibility for handling any VAT-related tasks for the Influencer, including tax declaration of the income year’s profit/loss in the applicable country and in accordance with relevant legislation. For the avoidance of doubt, this means that True Followrs does not handle or is in no way responsible for Influencers’ handling of VAT-related tasks, and True Followrs can in no way be held responsible for errors or omissions in VAT matters on behalf of Influencers.
True Followrs therefore recommends that all Influencers seek professional advice to ensure compliance with local tax and VAT rules, based on your individual circumstances.
By using True Followrs as an Influencer, you warrant (meaning you make a legally enforceable promise) that you have reported and will in the future report the receipt of all payments to you in connection with your use of True Followrs to the relevant tax authority in your home country.
By using True Followrs as an Influencer, you warrant (meaning you make a legally enforceable promise) that you will at all times comply with all laws and regulations relating to your VAT and tax affairs.
If at any time while you have a True Followrs account, a legal dispute arises between you and the tax authorities in connection with the settlement of VAT and tax including liability for fines and legal action etc., you agree that you will notify us in writing via email to email@example.com within 7 days of becoming aware of said matter.
You must therefore without delay provide us with details of the steps you are taking to address and correct any non-compliance with settlement etc. of VAT tax and to prevent the same from happening again, thereby providing us with such other information in relation to non-compliance with VAT and tax regulations in your home country as we may reasonably require.
Information shall be sent to us by email to firstname.lastname@example.org.
For the avoidance of doubt, you are responsible for your own tax affairs and we and our subsidiaries (i) are not responsible for advising you about your VAT and tax affairs and will not be liable in respect of general information provided on True Followrs or by email@example.com with respect to tax, and (ii) will not be responsible for any non-payment of tax by Influencers.
We reserve the right to close your True Followrs account if we are notified or become aware that you are not complying with applicable VAT and tax regulations in your home country.
Overall, True Followrs is not responsible for Influencers’ settlement of tax and VAT, as they are not considered to be in an employment relationship. The associated Influencers incl. Influencers established or resident in Denmark, will therefore be responsible for paying VAT and tax on their income from sales via True Followrs’ electronic platform.
The Platform’s responsibility
The True Followrs Platform is responsible for forming the basis for calculating sales and purchases in relation to tax and VAT.
Since sales and purchases are regulated via an external payment operator, data from this will be necessary for the VAT handling of the sale of services to the private followrs and for the purchase of services from the registered Influencers.
Finally, general accounting rules and rules for VAT accounting and tax accounting apply.