Notification about Sales Tax, starting July 1st (Patreon)

(Sorry if you see some form of this message in other Patreons, I think it summarizes the information fairly well, so I left it mostly as is. I apologize that I have to send out this message, but hopefully if there are any extra charges, it won't be anything massive.)

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. 

(I'm looking into the Advanced Tax settings to see if there is anything that can help in reducing the amount of tax charged. I have to wonder which categories get less taxes than others. It's a bit tricky to really know, as the tax is based on the Patron's location, not my location.)

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 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. m(_)m