Sales Tax update (Patreon)
Content
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'll try to work on the benefits so the tax impact will be as little as possible, but it's hard to oversee everything given how many variables there are.
If you’re in a location where sales tax will be required, you've likely received an email from Patreon with more information about this!
If you have questions, you should be able to find answers here: https://support.patreon.com/hc/en-us/articles/360043055071
If you still have questions, the best place to get an answer is from Patreon’s customer support team, here: https://support.patreon.com/hc/en-us/requests/new?ticket_form_id=70716
I'm terribly sorry for the late announcement on this.