Momobeda
patreon
Patreon Sales Tax Update
🕑 Added 2020-05-08 14:40:46 +0000 UTCPatreon has let us Creators know that they will be implementing a new Sales Tax July 1st, 2020. This will take effect in the USA and several other countries as well. They're giving us some time to let everyone know before they send out an email to all Patrons (you) at the beginning of June if they believe you'll be affected as a Patron. Here is some info I've managed to collect from Patreon including from their recent AMA:
- In Europe and other countries that already have the VAT, you will not see this additional fee.
- This tax will vary depending on what US country you are in,
- This tax will not apply to an entire Tier if the tax would apply only to certain items. You will only be seeing this tax applied to a portion of your Tier.
- Please check your local Sale Tax laws to see if Digital Goods / Files / Artwork would apply a Sales Tax to you. This will vary in % of Sales Tax and % of the Tier you are in.
- This tax will range from 4% - 11 % based on your location. Somewhat of a silver lining as the VAT that our European friends pay is 23% on an entire pledge and not a portion of it.
- Patreon does not and will not implement a system where Creators (myself) can opt into paying this tax for you, the Sales Tax OR the VAT.
- Patreon will be sending out an email to Patrons that they believe, based on your location, will be affected, June 1st, 2020. You will not see this charge take affect until July however.
- If you receive such an email, please check in with Momobeda if you have any further questions. Patreon will be allowing Creators to Catalog certain tiers and specific items within the tiers, into specific titles that may or may not be taxable in your area, but this feature will not be rolled until until the end of May / beginning of June. This will allow me to do my best, if you are affected, to hopefully only allow the smallest portion of your Tier to be taxed so you won't see much difference.
"For example, imagine you have a $5 patron in California. In the $5 tier there are three benefits, and only one of those is a taxable in California. California tax laws will allow us to charge sales tax on a portion of that $5 rather than the entire amount if we know what percentage of the $5 each benefit is worth. So for that patron in CA, it could save them 30 cents or so in sales tax."
If you have any further questions are need clarifications, please feel free to comment or DM Momobeda through Patreon or Discord and I will do my best to explain further or help you out!I will also be updating this post with further information if I end up getting FAQ's and doing my best to help you all out individually so we can figure this out together!
You will NOT be affected by this Sales tax for May 2020 Processing that happens June 1 - 5. Wolf O'Donnel May 2020 will not have an extra tax applied.
I have attached some files of the information Patreon has given us. You will see if your state will be affected by the new Patreon Sales Tax and further tell if certain things in your Tier will affected in your area further as it is a case by case basis for everyone. I hope to make this as painless a process as possible for everyone!Thank you for your support all this time! Kindest regards,Momo
