soushiyo
patreon
Patreon's new tax thing
🕑 Added 2020-05-21 17:01:09 +0000 UTCHey,
As you may have heard, either from other creators or Patreon itself, there are some tax rules changing that are out of my control. I'm configuring my Patreon settings in the hopes I can minimize the amount of tax you are charged, but I am not sure exactly what is going to be taxed, to whom, or how much. It depends on where you live and what is considered taxable there.
Here's the form letter Patreon suggested I send to Patrons to "talk about tax" ... it has some additional information. I wanted to write an actual message to you first though, even though I basically have no information for you in addition. Except that I'm doing what I can to be both legally transparent AND minimize what is taxed on your generous subscription pledges.
If you have questions I will do my best to answer, but like, the information on it is pretty vague at the moment which sucks for everyone.
:(
J
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form letter provided by Patreon to send to patrons:
Hi everyone,
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.
I’m working closely with Patreon to ensure I’m able to save you as much money as possible when it comes to sales tax - which is not something that’s possible with other platforms.
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.
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.
Comments
Soushiyo
Yeah it's a big bummer. I guess better that than getting disbanded entirely. I appreciate your loyalty!
Sparrow
Bit of a bummer, but it sounds like it's largely out of Patreon's hands. However, if the price I have to pay for top quality artwork is an extra $0.20, so be it.
