Sales tax for some countries and some US states incoming JULY 1st. (Patreon)

Hey everybody. As if the covid situation didn't make life complicated enough, Patreon just notified us of some changes and I wanted to let you know way in advance. It's taxes. It's inconvenient. It's boring. Folks in the EU are already familiar with this, with their VAT n all that (and their situation won't be affected by this, thank god.)

 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.

Patreon says they will automatically detect what each tier offers, and tax it accordingly. But they will also give us tools to closely adjust exactly what we're offering, so you're not charged for more than what you're getting. as soon as those tools are available I'll make the necessary adjustments.

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 and stay safe!