important sales tax information! (Patreon)
Content
Hi! i've been made aware that patreon will selectively begin charging a sales tax (based on your country--this rule applies to 16 countries) on top of the donation/pledge amount, starting july 1st 2020 in 16 countries (some US states, australia, belarus, iceland, new zealand, norway, canada (only quebec), russia, saudi arabia, singapore, south africa, south korea, saudi arabia, switzerland, taiwan, turkey, UAE)
what content is considered taxable depends on the country from what i know, because i ask for optional donations/support only with no exclusive items i believe most of you should NOT be taxed for donating to my patreon (again this is solely based on what patreon has said so until it comes into effect i don't know for sure, but according to US laws for example, the sales tax should not apply to my patreon)
so although the new tax will most likely not be applicable to me, i thought it was important to share this information anyway in case some of you are patrons of creators who have exclusive patreon downloads and/or physical goods, which may have a sales tax attached!
The following is taken from Patreon's support page:
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.
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.