Patreon Sales Tax Update (Patreon)

By now you may have heard that Patreon will start adding sales tax to some of your pledges starting on July 1st. This is being done after the US and 17 other countries passed laws requiring "online marketplaces" to apply sales tax to transactions. So this will not affect us directly, but rather each of our patrons when the time comes to make their pledge. This is different from VAT (European sales tax) that Patreon already handles for patrons in the EU.

According to Patreon, less than half of all patrons will be charged sales tax, and for most, the amount will be very small. Rates here in the US on a $5 pledge would end being somewhere between 20 and 55 cents. All of this depends on where you live, and what is taxed there. If you qualify for this tax, you should be receiving an email from Patreon about this soon.

The good news is Patreon is giving us the opportunity to help you save as much money as possible. They've created advanced tax settings that we can adjust per tier, and eagle-eyed Bloodworth has already gone through them and made tweaks based on our different rewards. Obviously, we don't know yet the impact of these changes, or how the addition of these taxes will change our revenue here on Patreon, but it's nice to have options.

Changes like this are expected when dealing with a platform like Patreon. We're not thrilled that each of your pledges is going to take more change out of your pockets, but we appreciate your continued support now more than ever. If you'd like even more information, you can visit this support page on Patreon: https://support.patreon.com/hc/en-us/articles/360043055071