Upcoming tax changes for patrons on July 1st (Patreon)

Hi everyone,

Patreon sent me emails about upcoming tax changes on July 1st. I did not have much time to wrap my head around it, but here is an example text, patreon suggests me how to inform you about it.

"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, 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." 

I adjusted benefits for current tiers to try to save you some sales tax money. I read in this article that General Support benefit is not taxable in many countries so I did the following.

3€ Tier benefits - 80% General Support and 20% Digital Download Content

5€ Tier benefits - 90% General Support and 10% Digital Download Content

7€ Tier benefits - 95% General Support and 5% Digital Download Content 

I am going to inform myself more about the changes in the coming days. Maybe it is possible to make the percentage on General Support even higher.