Notice on Sales Tax/VAT/GST (Patreon)
Published:
2020-05-14 23:18:42
Imported:
2021-08
Content
Patreon just sent an email regarding a change in Sales tax starting June 1st, which will effect Patrons in the US and 17 other countries.
This is copy-paste, word for word in the email received:
Here's What You Need to Know:
- We estimate that less than half of all patrons will have sales tax added to their pledge, and for most of them, the amount will be relatively 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 a patron will be taxed depends on where they live (not where you are located), what benefits you offer, and what’s taxable in the patron’s location. Tax rates and laws about what is taxable vary from place to place.
- Patreon will automatically detect what’s in your tiers based on keywords, and apply the right tax rate for each patron’s location, so you don’t need to take any action and sales tax will be handled.
- However, for creators who want to dig into the details and optimize, we are launching some advanced tax settings later this month that will allow you to do so. You will be able to override Patreon’s default settings and potentially save your patrons some taxes.
Once the advanced tax settings are launched I will take a look into it. But I hope that some of you are already informed from other creators or from your own emails. Thank you again for your continued support of my work!