Patreon Sales Tax Reminder (Patreon)
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Hey gang, I posted about this before but just one more reminder as we slide into July that a small number of y'all in the States may see sales tax be calculated with your pledge starting July 1. We're talking nickles and dimes it sounds like, but I don't want anyone getting surprised by it. I've done everything I can think to do on the back end to make sure they calculate it fairly, but we'll just keep an eye on it and see how it goes...
I'm including the canned text Patreon wants us to push out below, so when my eyes turn white and the voice of the Pa'zuzu comes out of my mouth you'll understand. 😉
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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.
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.