Legal and tax obligations of influencers

The influence and reach of influencers on social media has skyrocketed in recent years. With the hobby becoming a full-fledged business comes a host of legal and tax obligations that many aspiring influencers may not be aware of. However, ignorance of the law is no excuse - even online creators need to properly tax their income, follow advertising rules, protect their own content and enter into fair contracts with partners. This comprehensive guide therefore clearly explains the key areas that every influencer in the Czech Republic should focus on: from tax and VAT, to copyright and ad regulation, to contractual relationships and the risks associated with non-compliance.

Author of article: ARROWS (JUDr. Jakub Dohnal, Ph.D., LL.M., office@arws.cz, +420 245 007 740)

Tax obligations of influencers

Influencers' income is subject to income tax in the same way as other businesses - including barter transactions.

Income taxation

All earnings of an influencer - be it cash rewards for advertising, income from YouTube, collaborations on Instagram, donations from fans or barter (products or services received in exchange for promotion) - are subject to personal income tax.

The Czech tax law does not consider such income as casual activity but as continuous self-employment (Section 7 of the Income Tax Act).

This practically means that an influencer is an entrepreneur from the tax point of view (similarly to a self-employed person) and cannot benefit from the exemption of occasional income up to CZK 30,000 per year. On the contrary, they must file a tax return and tax their profits from content creation.

The advantage is the possibility to claim expenses - either actual costs (e.g. technology, software, travel) or a flat percentage. For royalties (if the influencer sells photos or licenses content, for example), a flat rate of 40% can be used, otherwise, as a rule, flat expenses of up to 60% of the income can be claimed. In any case, the influencer should keep at least a basic record of income and expenses for tax reporting purposes.

Social and health insurance

As income from online creation falls under self-employment, the influencer is also obliged to pay social security and health insurance contributions.

Even if the influencer has not formally obtained a trade licence (i.e. has been unofficially in business), the tax office and the social security administration will treat him as an entrepreneur - they will tax and deduct insurance contributions regardless of whether he has a formal trade.

It is therefore prudent to have a trade licence (typically in the field of advertising or audiovisual production) and to fulfil all reporting obligations to the authorities properly.

When does the obligation to file a return arise?

An influencer must file an income tax return usually by the end of March of the following year if he or she had taxable income of over a few thousand crowns (typically over CZK 15,000, or any amount from the business except for losses) in the previous year.

So in practice, most active influencers do file a return - even if, for example, it results in a tax loss or all income covered expenses. Not filing a return would be a major risk: the tax authorities have already started to actively audit influencers.

For example, an analysis by the General Tax Directorate revealed tens of millions of crowns of untaxed income of influencers in the Moravian-Silesian region in 2022 and many unfiled returns from YouTube and Twitch.

The authorities initially allowed late filers to pay up and file their returns retrospectively (often in instalments), but announced that they would continue the checks and extend the scope to other internet platforms.

The penalties for late filing or failure to pay tax are not negligible - interest on late filing and penalties (usually 0.05% of the assessed tax for each day of delay, up to 5% of the tax), but at least in the order of hundreds of crowns to thousands of crowns, in extreme cases up to CZK 300,000.

Deliberate tax evasion on a large scale may even constitute a criminal offence.

The recommendation is clear: keep a record of all income from your online activities and tax it on time so that the influencer does not end up in the authorities' sights with several years of debt.

VAT and foreign cooperation

Value added tax can come as a surprise to influencers, especially when working with foreign partners or platforms.

VAT registration (taxability)

In addition to income tax, successful creators must also think about value added tax (VAT).

In the Czech Republic, the turnover limit for compulsory registration is set by law - until the end of 2024, the limit was CZK 1,000,000 per 12 consecutive months, from 2025 the limit increased to CZK 2,000,000 per year.

Therefore, if an influencer exceeds this limit with their income from economic activity, they must register as a VAT payer within 15 days and start paying VAT on sales of their services (typically marketing services) from the following month.

It should be emphasised that non-monetary transactions are also included in the VAT turnover - e.g. barter income (value of products received in exchange for promotion) or income from abroad if the place of supply is in the Czech Republic.

Ignoring the obligation to register does not pay off - the tax office may retroactively register the entrepreneur, charge the unpaid tax and impose a penalty or fine. Therefore, as soon as the influencer's income approaches the limit, it is advisable to consult an accountant or lawyer and keep an eye on the turnover.

Identified person (VAT for cooperation with foreign countries)

Although many influencers do not have a turnover of CZK 2 million, they are still subject to VAT due to cross-border collaborations.

The Czech VAT Act stipulates that if a person (albeit a non-VAT payer) provides a service to an entrepreneur in another EU member state, he or she becomes a so-called identified person for VAT.

A typical example is income from YouTube/Google AdSense: an influencer provides an advertising service to Google, which is based in Ireland, i.e. in another Member State. In this case, the influencer must register as a VAT-identified person and start filing VAT returns or summary statements even if he has not exceeded the turnover threshold.

Please note - an identified person is not a full VAT payer. He does not pay VAT on his domestic transactions and cannot claim a deduction, but he is obliged to report cross-border transactions.

In practice, this means that if, for example, a Czech YouTuber invoices income from AdSense, he or she will report it as a service supplied to the EU (with the place of supply in Ireland) in the summary report and VAT will be paid by the recipient of the service (Google in Ireland).

Similarly, when an influencer purchases a service from abroad - for example, a foreign platform (Google, Facebook, etc.) charges him a commission or fee - he is liable to declare and pay VAT on the service received (reverse charge). This also makes him an identified person, if he is no longer a taxable person.

These situations are complicated - you need to correctly identify the place of supply and the type of transaction. Consultation with a tax advisor or lawyer is definitely recommended when entering into foreign collaborations.

An expert will help set up invoicing and contracts so that the influencer meets all obligations towards the Czech tax administration and possibly towards authorities abroad.

Practical examples of VAT

If an influencer invoices a Czech company that has ordered promotion from him and is not a VAT payer himself, he does not have to deal with VAT yet (until he exceeds the turnover).

However, as soon as he becomes a taxpayer, he would have to add 21% VAT to his invoices to Czech clients and pay it to the state. If an influencer promotes a company from EU countries (e.g. a Slovak e-shop pays him for a post), he is logically "selling a service abroad" - if he is not a taxpayer, he must register as an identified person and report this service.

Income from outside the EU is treated according to the rules for the place of supply - usually it is an export of a service which is not subject to VAT in the Czech Republic (the place of supply is outside the EU), but still has a reporting obligation.

At the same time, if an influencer purchases e.g. advertising services from Facebook/Google (based in Ireland) or elsewhere from abroad, he/she must declare and pay Czech VAT on these services received as an identified person. It can be seen that the area of VAT in online activities is complex and always depends on the details of the specific cooperation - hence the importance of professional advice. More than one successful Czech youtuber or streamer has already had to deal with the unpleasant surprise of being charged back VAT by the authorities on income from abroad, which she was initially unaware of. Early consultation and correct invoicing setup will prevent such problems.

Copyright and content protection

Photos, videos and other content created by influencers are protected by copyright - just like content from traditional creators.

Influencer intellectual property

Any original content an influencer creates - photos, videos, graphics, text, podcasts, etc. - is automatically copyrighted. In this case, the influencer is theauthor (unless it's a commissioned or employee work for someone else) and owns full rights to the work.

This includes the right to decide how the content is used, reproduced, published, etc. Protection is automatic when the work is created - no registration is required. It's important for influencers to know that their content is their property and no one else can use it without permission.

Unauthorised use of someone else's content

Equally, however, an influencer should not make unauthorised use of someone else's content. For example, a photo cannot be used without the author's permission - there are legal exceptions (personal use, etc.), but any commercial use of someone else's photo or video must have the author's permission (license).

In practice, this means that if an influencer wants to use, for example, someone else's photo, an image from the internet, a snippet of someone else's video or music in their post, they need to check the copyright.

The solution is either to use content distributed under an appropriate license (e.g. music from a library that is licensed for use in videos, photos from photo libraries licensed under Creative Commons, etc.) or to seek permission from the author. Failure to do so may result in copyright infringement - the author may claim the withdrawal of the content, damages, unjust enrichment (i.e. payment of the usual licence) and possibly non-pecuniary damages. For example, if an influencer uses someone else's music in a YouTube video without permission, the platform can block the video (based on a reported copyright claim) and the creator of the music can recover fees.

Instagram and other networks make it clear in their terms and conditions that a user may only post content to which they have rights - otherwise they are also in breach of the platform's terms and conditions. It is therefore in the influencer's interest to be wary of other people's content.

Protecting your own content

Influencers should also take an active role in protecting their work. If someone else uses a photo or video created by the influencer without permission, they are infringing on their rights.

In such a situation, the creator (influencer) can defend himself or herself - typically by first informally asking the person to take down the content and, if that doesn't work, by legally demanding that the person refrain from further use and compensation.

The practice on the internet is often complicated because content spreads quickly, but even ordinary creators can get their way - for example, through a cease and desist notice or a lawsuit.

In many cases, a posted notice and the threat of a lawsuit is enough to get the stolen content taken down. For larger infringements, influencers should not be afraid to defend their rights in court - specialist law firms have represented many photographers, bloggers and YouTubers in successful disputes over the unauthorised use of their videos and photos.

The team of ARROWS law firm s. r. o.

Licensing partners

In the context of collaborations, there is often a situation where the influencer themselves voluntarily grant the rights to their content to a partner. For example, they make a video or create a photo for a sponsor and the sponsor would like to use it further (for example, on their website or in advertising). This is done through a licensing agreement.

The influencer should always define exactly what he or she is giving consent for - whether the company can redistribute the content, modify it, or for how long and in what territory. It is recommended to grant only as broad a license as the partner really needs.

An influencer should never unknowingly sign that they are handing over their copyright completely to a partner - they could lose control of their own work. Reputable companies won't even ask them to do this; a time and purpose limited license is standard. If an influencer is unsure about the wording of the licensing provisions in the contract, legal advice is in order - a lawyer will make sure the creator doesn't come up short and hand over more rights than intended.

Who can you contact?

Other forms of protection

In addition to copyright, intellectual property also includes, for example, trademarks.

Many popular influencers build their own brand (e.g. their channel name, slogan, logo). If such a name takes on commercial value, it is worth considering registering it as a trademark - this will prevent competitors from misusing the name and strengthen the influencer's "brand". Legal counsel can advise whether registration is appropriate and arrange it if necessary.

Similarly, the creator should guard personality rights - e.g. not letting it go unanswered if someone uses his likeness (a photo of his face) in an advertisement. This also requires permission under the Civil Code. Overall, influencers should treat their content as their intellectual capital and actively protect it from misuse.

Regulation of advertising and cooperation

An example of the Instagram environment: each advertising post must be clearly labelled to make it clear at a glance that it is a collaboration.

Obligation to label advertising

One of the most important legal requirements in influencer marketing is the transparency of advertising. The Consumer Protection Act and the Advertising Regulation Act expressly prohibit so-called hidden advertising - i.e. advertising that is not obvious at first glance. If an influencer presents a product or service on their profile for payment or other consideration, this must be clearly indicated.

Advertising means any public presentation made to promote a business - it does not matter whether the influencer is promoting for money, for free or out of enthusiasm.

Any post with a promotional purpose should therefore carry a label that it is a collaboration. Ideally, this label should be unambiguous, understandable and highly visible, and in a language that the majority of followers understand (for a Czech audience, that is, Czech).

How to mark collaboration correctly?

There are several ways to label an ad. Many platforms now offer official tools - for example, Instagram allows you to tag "Paid partnership " with the partner's name next to the post. These tools are good to use, but you can't rely on them alone. Practice shows that they are often overlooked or not obvious enough. It is therefore advisable to include the label directly in the text of the post or video.

In Czech, it is common to use terms such as "paid cooperation", "advertising", or hashtags such as #spoluprace, #placenaspoluprace etc. (The English #ad may be overlooked or misunderstood by the Czech consumer.) It is important that the average viewer can easily recognize that the content is a commercial message. Caution is never enough - label even a collaboration for which the influencer did not receive money, but e.g. a gift or benefit. Even a product given for free in exchange for publicity is a consideration.

Legal framework for advertising

In the Czech Republic, Act No. 40/1995 Coll., on the Regulation of Advertising, generally regulates the obligations of advertising messages. This Act stipulates, among other things, the requirement that advertising must be clearly identified as advertising.

Compliance is supervised mainly by regional trade authorities, or by other authorities for specific products (e.g. medicines, food supplements, gambling - supervised by the State Institute for Drug Control, the Ministry of Finance, etc.).

If the authority finds that hidden advertising has been disseminated, it may initiate administrative proceedings and impose a fine of up to CZK 5 000 000. Although the law uses such maximum sanctions in extreme cases, fines of hundreds of thousands of crowns are not exceptional.

For example, abroad (Great Britain, USA), well-known influencers have already been fined heavily for insufficient labelling of their advertising, and similar cases are also occurring in the Czech Republic (albeit less publicised).

Therefore, the risk cannot be taken lightly - according to experts, failure to label advertising is one of the most pressing legal problems in influencer marketing. In addition, for the influencer, it is not only a fine, but also the loss of trust of the audience if it turns out that they have concealed commercial collaborations.

Other rules for commercial communications

In addition to the "#ad" label, other legal requirements for the content of advertising must be followed. It must not be misleading - an influencer should not spread false or misleading information about a product, or they could face penalties for deceptive trade practices.

• It must not breach good manners - for example, promoting extremely inappropriate content could come across.
• Special regulations apply to certain products
• Tobacco products and e-cigarettes must not be promoted by an influencer targeting young people;
• Alcohol has restrictions (advertising must not be targeted at minors, must not promote uncontrolled drinking, etc.);
• Complementary medicines and food supplements must be presented with certain mandatory warnings and without medical claims, etc.
• Cosmetics intended for children even have a specific code of ethics which advertising must not violate.

Influencers should be aware of what they are promoting - if it is a regulated product, there should be thorough preparation and often prior approval of the content by a lawyer or company officer (as is common for campaigns for pharmaceuticals, financial services, etc.).

Cooperation with agencies and platforms

Many influencers enter into collaborations through marketing agencies or platforms that pair creators with advertisers. These entities often provide instructions on how to tag the ad, and sometimes enforce a consistent style (e.g. use of hashtags, tagging the business partner directly in the Instagram post, etc.). The influencer should follow these guidelines, as the agency is usually reflecting the requirements of the law and the client's internal rules.

However, both the influencer (the advertiser) and the client are responsible for hidden advertising. It is therefore in the interest of both parties to address this - a good quality contract should clearly specify who is responsible for what and, where appropriate, contain an indemnity clause (an agreement on who will bear any penalties from the authorities).

For large campaigns, company lawyers will usually look after this. For smaller collaborations, the influencer themselves should be cautious - their reputation is at stake and they should insist on transparency. The short-term gain from covert advertising is not worth the potential penalty and negative publicity.

Contractual relations with partners and agencies

Need for a written contract

Any collaboration between an influencer and a company (or agency) should be supported by a contract.

Although the law does not require a specific "influencer collaboration agreement", in practice an unnamed contract is usually concluded according to Article 1746(2) of the Civil Code - in short, an agreement where the terms of the collaboration are defined.

A written contract is crucial for the protection of both parties. It clearly sets out what the influencer undertakes to do (e.g. create and publish certain content) and what the partner undertakes to do (pay a fee, etc.). If everything remained verbal, it would be very difficult to prove what was agreed in the event of a dispute. With a written contract, confusion is avoided and breaches of terms can be addressed.

Key points of the treaty

Contractual freedom is quite wide, there is no single template - but it has worked well to include the following elements in particular:

1. Specific specifications of the promotion - i.e. what exactly the influencer has to deliver: e.g. number of posts, on which platform (Instagram, YouTube, TikTok, blog...), from which profile, in what form (post, video, stories), in what time frame and with what frequency. This avoids disputes about whether the influencer has published "enough" content and whether they have met the partner's expectations.

2. Duration of the collaboration - it makes a difference whether it is a one-off campaign or a long-term partnership. The duration of the contract should be clear, with the possibility of early termination (and the terms of such termination) if applicable.

3. Content license - the contract should stipulate how the sponsor can continue to use the content the influencer creates. Typically, the company requires a license to reuse photos, videos or texts - e.g. to share them on their channels, use them in a newsletter, etc. The scope of the license should be clearly defined (purpose, medium, time, territory). If the contract does not mention it, the partner has no right to further use the content beyond the agreed publication with the influencer.

4. Consent to use the influencer's personality - this includes the influencer's permission that the company may, for example, use the influencer's name, nickname or likeness in connection with the promotion (e.g. to boast about the collaboration). This should also be part of the agreement.

5. Presentation rules - sometimes companies have requirements on communication style, use of hashtags, prohibition of certain wording, etc. If the influencer agrees, this can be woven into the agreement. It is also important to comply with legal requirements - responsibility for labelling advertising and legal correctness should be mentioned in the contract, so that it is clear that the influencer, for example, must label the post as advertising.

6. Approval of content - if the company needs to be able to pre-screen (typically for sensitive products with legal restrictions), it is advisable to agree a mechanism for approving posts before publication. This avoids a situation where an influencer unknowingly publishes something that a partner cannot accept (e.g. due to regulatory rules).

Remuneration and payment terms

One of the most important parts is the influencer's remuneration agreement. The contract should set out the amount of the remuneration or how it is determined (e.g. by number of views, percentage of sales when using a discount code, etc.) and the due date.

The remuneration does not have to be monetary - it can be barter (e.g. the influencer gets products or services). Even barter should be priced and described.

It's also worth negotiating whether the reward covers everything or is tied to meeting some goals (e.g. a bonus for achieving X orders through an affiliate link). It is crucial for the influencer to be certain when they will be paid and under what conditions. On the other hand, a company can only agree to pay if the influencer fulfils everything. Compromises are common - e.g. an upfront payment and a top-up payment after the campaign has been evaluated.

The team of ARROWS law firm s. r. o.

Contractual penalties and sanctions

In order to make the agreement enforceable, contractual penalties are commonly used in case of breach of obligations. For influencers, this can be a penalty for non-compliance with the content of the agreement - if they do not tag an ad, do not meet the number of posts, violate exclusivity, etc..

A contractual penalty motivates performance and gives the other party at least partial satisfaction if cooperation fails. Of course, it should be reasonable (it shouldn't ruin the influencer, but it shouldn't be ridiculously low either). In addition to fines, the contract may provide for the possibility of terminating the collaboration in the event of a breach of duty or requiring compensation if damages are incurred.

Exclusivity and competitive constraints

Companies sometimes require that the influencer does not promote competing products or brands for the duration of the collaboration.

This makes sense - no one wants to invest in an influencer who then promotes a competitor. If such exclusivity is agreed, it should be limited in time (e.g. the influencer commits not to promote competing cosmetics for 3 months) and ideally balanced by adequate remuneration, as the influencer is missing out on other opportunities. Again, exclusivity is secured by a contractual penalty in case of breach. The influencer should carefully consider whether a particular collaboration is worth it to them - sometimes it is better to refuse exclusivity or negotiate a shorter term.

Other provisions

There are other important points in the contracts:

• Confidentiality - the influencer will often receive information about the product, marketing strategy, etc. in advance and agrees not to disclose it.
• Rights of defective performance - what if the influencer delivers low-quality or late content? What if the company fails to provide the promised materials? The contract can address these situations as well.
• Dispute resolution - sometimes it is stated that disputes are resolved by the local court in the Czech Republic or even an arbitration clause (better to think about this one, it can be disadvantageous).

For international collaborations, it is necessary to agree on the applicable law (the law of the country to be applied) and, where appropriate, the language of the contract. For example, if a Czech influencer collaborates with an American company, the company may want to contract under the law of California - this is very complicated and risky for the influencer. In such a case, it is definitely advisable to engage a lawyer and negotiate either the application of Czech law or at least understand the foreign terms.

Hidden risks and what to look out for

Influencers (especially new ones) should beware of unfavourable terms and conditions that may not be obvious at first sight, for example:

• Overly broad licensing - if the contract says the company can use the influencer's content freely and forever, this is disproportionate to the usual remuneration.
• Unreasonable penalty - sometimes proposals include very high penalties that could economically ruin an influencer for minor misconduct.
• Unlimited exclusivity - the prohibition on promoting any other products, often after the collaboration has ended, is very binding.
• Ownership of content - some contracts try to enshrine that all content created in the collaboration belongs to the sponsor; this is disadvantageous from the creator's point of view (they lose their copyright).
• Long commitment - a contract of many months or years, which the influencer cannot easily get out of, may prevent the influencer from taking advantage of other opportunities. It is therefore always advisable to read the contract thoroughly before signing and ideally have it checked by a lawyer. An experienced attorney will quickly identify potential problem provisions and suggest adjustments.

Agencies and networks for influencers

Some creators contract an agency to represent them and find them work. Again, you need to be cautious here - typically the agency asks for a commission (a percentage of each collaboration) and sometimes exclusivity (the influencer is not allowed to take collaborations outside the agency). It is necessary to be clear what the agency offers in return - e.g. minimum number of campaigns per period, help with content, legal service, etc. The influencer should know whether the contract with the agency prevents him/her from independent activities (e.g. publishing his/her own merchandising, which the agency would like to commission).

If the agency promises "mountains of mines" but wants long-term exclusivity, caution is in order. A good agency will have a fair contract - transparent commissions, the ability to exit the collaboration after a reasonable period of time, and quality service.

Penalties and risks of non-compliance

Tax penalties

As already indicated, underestimating tax obligations can lead to unpleasant consequences. The tax authority may assess unpaid income tax and VAT back several years, including interest on late payment (currently about 14% per annum) and penalties (up to 20% of the assessed amount). Penalties (0.05% of tax per day, maximum 5% of tax, minimum CZK 500) are commonly imposed for late filing.

If an influencer fails to file a return at all, even when asked, a separate fine of CZK 500 to CZK 300,000 is imposed.

In particularly serious cases of deliberate tax evasion (on a large scale), the conduct may be qualified as a criminal offence with a prison sentence.

Such extremes occur rather rarely - usually with people who have earned millions over several years and have not declared anything at all. Rather, most influencers risk less dramatic but more tangible consequences: paying tax and insurance premiums with interest can mean a large financial burden in one lump sum.

Case in point: the aforementioned audit by the tax authorities in 2022 revealed dozens of influencers who had millions in unpaid taxes. So far, the authorities have taken a relatively lenient approach (allowing for additional returns and repayments), but they are announcing a stricter approach in the future. Influencers who continue to ignore the notices could face enforcement action and other penalties.

That's why it's better not to mess around and to deal with taxes early - prevention is easy and cheap compared to dealing with the mess.

Who can you contact?

VAT penalties

A specific category is the penalties for failure to register for VAT. If a business exceeds its turnover and fails to register as a taxable person in time, the tax office will register it retroactively from the date of the excess turnover and require it to pay VAT on taxable supplies made since then. This may be problematic for the influencer - he would have to pay additional VAT on invoices he has already paid without having originally paid VAT on them (in fact, he would have paid the tax "on his own"). Furthermore, there is a penalty for late registration (10% of the output tax for the period since the overrun). For identified persons, there are penalties for failure to file VAT reports or returns (fines typically in the thousands of crowns for each form under the Tax Code).

While these amounts may not ruin you, they needlessly steal from hard-earned earnings. So again - better to study or consult the rules early.

Fines for unmarked advertising

In the field of marketing, the biggest scare is the aforementioned fine of up to CZK 5 million for hidden advertising. In practice, the Czech authorities have not yet imposed such high fines on influencers, but smaller penalties have.

In addition, self-regulatory mechanisms are at work here - for example, platforms can delete or flag unmarked collaborations based on suggestions, competing influencers can point out unfair competition, and the media can smear the case. All of this damages reputations.

For the influencer, transparency is the best way to go - retaining the trust of the audience and avoiding the risk of legal action. In addition to a direct fine under the Advertising Regulation Act, unlabelled advertising can fulfil the characteristics of a misleading practice under the Consumer Protection Act, where it also risks sanctions (and is supervised by the Czech Trade Inspection Authority). If an influencer repeatedly violates the regulations, they could be labelled unreliable and companies would stop working with them, which would threaten their source of income much more than any one-off fine.

Consequences of breach of contract

Failure to comply with contractual obligations can have financial consequences for the influencer. If the contract contains a contractual penalty, the partner will be required to pay it.

For example, an influencer fails to deliver the promised number of videos - the company may demand a contractual penalty of, for example, 50,000 CZK. If he doesn't pay, the dispute may end up in court or arbitration, with an additional increase in costs. There is also the risk that the partner will withdraw from the contract and refuse to pay the fee, or demand a refund of the services already provided. These are all realistic scenarios.

At the same time, the influencer loses goodwill in the industry - marketing agencies and companies pass on experience to each other and an unreliable creator can lose future deals. Similarly, the influencer can suffer damage if the other party breaks the commitment (for example, the company fails to pay the agreed amount). In such a case, the influencer should actively pursue their claims - legal counsel can help with this too, so that the influencer is not disadvantaged simply because they are an individual dealing with a large corporation.

Legal disputes and lawsuits

In addition to the threats mentioned above, there are other legal risks. For example, defamation or defamation of character - if an influencer makes a false accusation against a person or company in their content, they could face a defamation lawsuit or criminal charges for defamation. Data protection breach - if he or she posted someone's personal information without consent (e.g. the address of a fan who sent them a gift, etc.), they could face a GDPR issue.

Failure to comply with competition rules

Many influencers run competitions for fans; even these have legal restrictions (you cannot draw purely at random without meeting the lottery conditions, prizes over CZK 10,000 are subject to tax, etc.). Here too, you may face fines from supervisory authorities (e.g. customs for an illegal lottery). As exaggerated as it may sound, there have already been cases where the authorities have taken an interest in Instagram contests violating the law.

All in all, influencers are entering the professional sphere of business, where they face similar penalties for non-compliance with the rules as any other business - from financial penalties, to civil lawsuits, to extreme cases of criminal liability. The difference is that many influencers started informally and may not be aware of all these risks.

That's why self-education and prevention is essential - which is what they do by reading articles like this one.

Who can help you with that?

How can a law firm help influencers?

Legal support on the road to professionalisation

For a creator who wants to focus entirely on content and fans, the number of legal obligations can be overwhelming.

Fortunately, he's not alone - hundreds of influencers have been down the same path, and many have enlisted the services of legal and tax experts to make sure they're doing everything right. A qualified law firm can guide an influencer through the pitfalls of legislation and protect their interests.

How specifically can it help?

Business formation and tax setup

• A lawyer can advise on what form of business to run - whether as a sole trader or possibly setting up an LLC at higher profits.
• He can help arrange a business license, registration with the tax office, social security administration and health insurance company.
• He will recommend the appropriate setup in terms of taxes - for example, whether to apply flat-rate expenses or actual expenses, whether to enter the flat-rate tax regime, etc.
• In cooperation with a tax advisor, the attorney can suggest optimizing the tax burden within the limits of the law (e.g., applying royalties in a special tax treatment, using tax credits, etc.). In this way, the influencer avoids mistakes that could later be sanctioned by the authorities.

VAT and cross-border payments

• The specialist will explain to the influencer if and when he/she has to become a VAT payer or an identified person. If necessary, he/she will help the influencer to prepare the documents for VAT registration.
• He or she will point out situations where the influencer has to file a summary report or VAT return (typically when working with Google, Facebook, etc.), and can also offer administrative services - e.g. arranging monthly VAT documentation. This removes the influencer's complex agenda and minimises the risk of forgetting something.
• If the influencer sells their own goods or services to fans abroad (merch, paid content), the lawyer will advise on schemes such as OSS (One-Stop Shop) for VAT in the EU. In short, he will help set up a smooth operation even on an international level.

Creation and control of contracts

One of the greatest added values of an attorney is the ability to create or review contracts with partners.

A lawyer can prepare a template partnership agreement tailored specifically to the influencer, which they will then present to the firm - taking it to a professional level and setting fair terms. Alternatively, when a company sends in its contract, the lawyer will review it and explain. He or she will point out problematic provisions, suggest modifications, and help negotiate changes if they are needed. This saves the influencer a lot of trouble and money in the future.

As the saying goes, "A hundred crowns for the advice of a lawyer can save tens of thousands in later litigation." Having order in contracts means, among other things, certainty in remuneration, properly handled copyrights and clarified obligations for both parties.

Advertising and marketing solutions

The law firm monitors current interpretations of the law and will help the influencer set up communications to comply with the law. It can prepare a short code of labelling for a given advertiser - for example, recommendations on phrases to avoid and how to use labels such as #ad etc. correctly. If in doubt, it will provide advice on a particular campaign (e.g. whether a particular post is still a "non-binding recommendation" or already an ad requiring a label).

Check that content complies with regulations - e.g. for competitions, advise on how to run them legally, for alcohol or cosmetics promotions, check that the text complies with legal requirements.

This helps the influencer avoid fines and negative publicity. If the authorities do come calling (e.g. to explain a commercial post), the lawyer will help draft a response and represent the client in the proceedings.

Brand and content protection

Intellectual property law experts can secure the registration of a trademark (e.g. a channel name or influencer logo), giving the influencer a higher level of protection and the ability to defend their brand. In case of content theft (photos, videos), the lawyer will write a takedown notice and possibly take other legal steps to prevent the misuse of someone else's content.

He can also prepare a model license agreement for providing content to third parties so that the influencer can safely and profitably sell, for example, his photos to magazines, footage to TV stations, etc.

All these legal documents drafted by a professional greatly increase the influencer's legal certainty.

Representation in negotiations and disputes

If a situation arises where an influencer needs to enter into negotiations with an opposing party (e.g. to recover an unpaid invoice from a company, to resolve a dispute with a former business partner, to respond to a show cause notice from the Office for Personal Data Protection or other authority), an attorney communicates and defends their rights on their behalf. The opposing party then knows that the influencer is serious and has the expertise behind them - often leading to a quicker and fairer resolution. As a last resort, if it comes to litigation, the law firm will provide full representation in court or administrative proceedings.

Few individuals have the capacity and knowledge to litigate with lawyers from a large company or the state - with professional counsel, the chances of success increase significantly.

Ongoing advice and trust

Working with a law firm for a long time gives the influencer peace of mind that they have someone to contact in case of any uncertainty. The law and rules on social media are evolving - just think of how GDPR rules have come in, VAT limits have been amended, new platforms with their own settings have been created.

Legal counsel keeps influencers in the loop. He can alert him to upcoming changes (such as the aforementioned VAT limit increase, Instagram's new requirements for tagging collaborations, etc.) and recommend what needs to be done. This will help the influencer avoid surprises. At the same time, he builds his image as a professional, who has his business in order - which will be appreciated by serious business partners.

It's no secret that some companies prefer to work with influencers who they can be sure are compliant with laws and ethical standards, so they don't put themselves at risk. A legally knowledgeable and secured influencer is therefore more attractive to business.

Conclusion

Acting as an influencer today is a real business with all the trimmings. Those who are serious about it should approach it responsibly - and legal and tax is an integral part of that. This article has highlighted a number of areas to look out for: from taxes to contracts to advertising. The good news is that, with the support of experts, these 'scares' are manageable. A law firm specializing in media and marketing can guide an influencer through all the duties so he/she can focus on what he/she does best - creating quality content and developing influence.

Investing in legal advice pays off in the form of peace of mind and confidence that the influencer's business is on solid footing and no authority or litigation will catch him/her by surprise. Building trust is key - and not just the trust of the audience, but the trust that the influencer has everything legally covered. Ultimately, this is how legal awareness and the help of professionals will allow influencers to grow and succeed safely and sustainably.

Summary

The influencer world has long since ceased to be the Wild West without rules. Every post or campaign takes place within the confines of laws that protect consumers, intellectual property and fair business. For influencers, this means new responsibilities - but with the right guidance and knowledge, it's not an insurmountable hurdle. On the contrary, those creators who embrace the legal and tax minimums gain a competitive advantage. They avoid problems, build professional partnerships more quickly, and can focus on what matters most: creating content that inspires and entertains their audience.

Whether you're a budding influencer or a seasoned creator, there's no shame in admitting you're not up on the legal finer points - that's what experts are there to have your back. Take their advice, be responsible, and your social media career can grow without unnecessary legal carom.