Patreon and the sale tax. (Patreon)
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Hello,
You might soon receive a mail from Patreon about a new sale tax. Basically it comes from new laws passing in several countries and some US states. They require “online marketplaces” to apply sales tax to digital transactions.
Patreon is included in that, and will be required to start charging sales tax on some pledges starting in July.
This is causing a bit of a stir currently as there are a lot of creators who are unsure what it means for them and their patrons.
The answer is it varies a lot depending on what a creator offer to their patrons and their location.
Some things I got from reading on the subject:
-in the cases where that tax applies, that amount should be relatively small ( in the 4 to 10% exception of if you live in : Russia, Belarus, Turkey, Iceland and Norway, where it seems higher )
- Countries from the EU are unchanged as such law has already been in place since 2015
-Countries from South America are not concerned.
-My page shouldn't be affected by this change at all if you live in the US as I'm in the community access and service category of reward which doesn't seem to be concerned there.
Overall i'm not totally sure how this is going to apply. I'm cautiously optimistic there won't actually be a lot of change for my page -if any- as it seems to target mostly sold goods but I wanted to give you guys a head up if you are wondering about such mail appearing in your mailbox ;3