Barter in marketing is an exchange of consideration without a flow of money – a company provides goods or a service and receives promotion, space at an event or content in return. It looks like a cost-free solution, but for accounting and tax purposes it is two separate supplies, which are valued and invoiced by both parties, usually at the going rate, and then set off against each other. Without documentation, there is a risk on audit, since proof of both value and purpose is missing. The agreement should therefore state exactly what each party provides, in what scope and at what value, plus deadlines. When working with content creators, remember that barter is remuneration, so the post is subject to being labelled as advertising. Verify the specific accounting and tax treatment with your accountant, as it is assessed according to the nature of the supply.
See also: Collaboration with an influencer, Tax deductibility of advertising costs, Company marketing budget.
