So Sales Tax Is Going to be a Thing (Patreon)
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I just got a message that they'll be doing sales tax starting July 1st.
They claim less than half of everyone is gonna be taxed, and a lot of people don't count depending on what kind of benefits they're getting. I'm not really sure what category advance chapters fall under. Anyway, it's highly variable, and if you wanna know for sure, the only way is to figure out the tax code of your state, which is a cluster.
In the unlikely event you get sales take, it'll be between 4-11% unless you're outside America, then I have no idea.
Here's the sample notification they suggest putting up.
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Post title: An update on sales tax
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.
Thank you for all of your support.
^
And that's what's going on nowadays. I don't think it'll be too terrible, all things considered. Pretty sure advance chapters count as Exclusive Community Access, a category they claim isn't taxed in most states. But we'll just have to see.
Let me know what you think in the comments.