cunihinx
patreon
About Patreon's New Sale Tax
🕑 Added 2020-05-29 01:09:56 +0000 UTCHello everyone,
I wanted to give you an update on some changes that well 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.
According to Patreon's own estimate, 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.
As you know I don't offer any tangible goods in my benefit, even my downloadable files are free for all after a while so in my opinion it's not "downloadable goods" which is taxable in some places. I've set the benefit in every tier as "general support" which is always the idea behind my Patreon to begin with, you know I don't put things behind paywall permanently. According to Patreon support benefit is exempted from tax so let's hope that's really the case here.
If youre 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 Patreons customer support team, here.
Thank you for all of your support.
EDIT: tl;dr summary to avoid confusion, if you're US citizen or from several countries with these new law, Patreon will send you e-mail detailing this. For my part I've set this Patreon in a way that (hopefully) will be exempted from tax ruled by this new law. Hope this helps, and hopefully nothing changes that much.
