An Update from Patreon about Sales Tax (Patreon)

hello hello hello fam!! 

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 going to be looking at Patreon’s new tax settings which are described as below:

”We encourage all creators to use our new settings, which give you more control over how sales tax is applied to your membership and potentially save your patrons money on taxes.”

I am hoping that by changing some keywords and updating my tiers a bit, no one will be charged extra (or at least will only be charged a minimal amount extra). I will contact you directly if I think this affects you. For example, I will need to rethink my Level 5 tier because it would NOT be fair for you to be charged tax every month for a physical product that you only receive upon pledging (T-shirts/hoodies are taxable). 

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 💜✨