bigmaxwolf
patreon
An update on sales tax
🕑 Added 2020-06-29 20:16:52 +0000 UTCBoilerplate Explanation
I wanted to give you an update on some changes that we’ll be seeing which may affect some of your pledges. 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.
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, but I wanted to make sure you were aware of these changes way ahead of July 1st when they go into effect.
What Max Thinks
Patreon has been sending emails about this since May, I am slightly worried that with the amount of preparation and warning on their end these feel like they will be drastic changes and will alter in a big way in which people contribute to a user here. Granted this is just what my gut is telling me.
On their backend they have me configure percentages for each tier of pledges, I have decided to spread out the percentages evenly based on number of items so individual sales tax for items ends up being 15 - 30% depending on how many others there are.
In an example posted they mention a country taxing a sticker as a physical item, since I don't offer any physical goods and only digital ones perhaps it won't be as bad as I am thinking!
In Closing
Regardless of what happens, I still want you all to know that I appreciate how much Patreon has changed my life and I look forward to being able to make so much more content and start collaborating with other artists. None of this would be possible without all of you and for that I thank you! 🖤
Comments
Maxwolf
Thanks for the kind words! Yeah I just following the rules and wanted to give a heads up to folks so it wasn't a surprise in the off chance Patreon didn't mention it to users (but that would be weird).
Mithane
Sales tax and such will typically help often more than it hurts. Odd how sales tax is creeping into the digital world but I digress... I can hope this will let you get the full value of your patreons with no fees and whatnot max to help fuel your dreams and make the wolf even bigger! PS. If you need a voice acting intern I'll happily read some scripts for you no charge!
