galaxycompass
patreon
Necessary Update
🕑 Added 2020-05-20 09:58:23 +0000 UTCNot the most exciting post but necessary as Patreon is updating its sales tax policy and I would like to let you know this beforehand. Here is the information they have provided with links or contacts would you need to find out more.
TL/DR: If you live in some countries listed in the link below, starting July 1st you may have to pay sales taxes that will be collected by Patreon and paid to your local government. US Patrons might pay a tax ranging from 4 to 11% depending on their location (on a $5 pledge, that would be between 20 cents and 55 cents). No changes for European union countries which already pay these taxes on Patreon.
Due to new laws passing in several countries and US states, Patreon will be required to start charging sales tax on some pledges starting July 1st.
Less than half of all patrons will be charged sales tax, and for most, the amount will be very small. For example, sales tax rates in the US range from 4% to 11%, so on a $5 pledge, that would be between 20 cents and 55 cents.
Whether or not you will be charged sales tax depends on your location, and what is considered taxable there. Not every pledge is taxable, not all benefits are taxable in every location, and sometimes only a fraction of a pledge will be taxable. The money that Patreon collects as a result of these laws are paid directly to local governments.
Patreon will launch some settings for creators, this will allow me to save you as much money as possible when it comes to sales tax, but most of my rewards are taxable digital goods, so how much I can tweak is yet to be seen.
If you’re in a location where sales tax will be required, you should expect to receive an email from Patreon with more information about this very soon.
If you have questions, you should be able to find answers here. If you still have questions, the best place to get an answer is from Patreon’s customer support team, here.
Thank you for all of your support.
