Patreon's Sales Tax Update (Patreon)

Hi everyone,

You've likely gotten an email from other creators or Patreon themselves regarding this issue, but 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 is now legally required to start charging sales tax on some pledges starting July 1st. Most of this message is probably quite similar to what you've read elsewhere, but if you haven't seen it yet, you should give it a quick read.

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've done my best to minimize the impact this will have on you guys, but I honestly don't understand it all and it doesn't tell me what will be taxed and where.  If you live somewhere that has a sales tax, you may 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 let's hope for the best. As more information is available to me in terms of what pledges and tiers are impacted the most, perhaps it will be possible for me to lessen the impact of sales tax there. I personally live in a state that has a sales tax, so I'm used to the feeling, but it's still unfortunate that it's happening now.

In any case, I tried my best to set it up properly and will monitor the situation closely. Feel free to reach out to me too if you need to. Thanks!