About The Upcoming Patreon Sales Tax (Patreon)

Hey everyone,

I forgot to mention this in yesterday's post and you may have already heard about it from other creators, but starting from the 1st of July, Patreon is being mandated by law to start charging a small sales tax on patron pledges. Whether or not this will affect you depends on the taxation laws in your country. For example, patrons from European countries have already been paying a VAT on Patreon pledges for years so nothing new will change for them. You will be getting an official email from Patreon around early June with more details if you are in one of the affected countries (including the US). I've just been recommended to give you an early heads up about these developments from Patreon.

Bellow is a short hand explanation from Patreon themselves, you can follow the links if you want more information. If you'd rather not read, you can find a 10 minute video on the subject at hand in the first link at the bottom of this message.

~ Jim

Hi everyone,

We 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.

We're working closely with Creators to ensure that we're 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 we 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.