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IMPORTANT PLEASE READ: New Patreon Changes ( updated ) (Patreon)

Published:
2020-05-07 15:24:43
Edited:
2020-05-07 22:51:22
Imported:
2020-08

Content

These are changes to Patreon as a website and I would like you to read my post about it here in full.

Patreon has now been required by law to charge sales tax on pledges based on the country you pay from, this means your pledge amounts MAY go up slightly as tax will now be applied on it ( The US ranges from 4% - 11% while Canada is 13% , etc)

This means starting July 1st your $5 pledge or so here could be $5.20 - $5.65 or so depending on where you live and what your areas sales tax is.
I want to write this to let you guys know this is going to happen.
I want to give myself credit and back up MY patreon by saying while I understand a 4% - 13% ish increase is unexpected and can be the difference from being affordable to not affordable I want to say I 100% believe my patreon is one of the more affordable in terms of low pledge requirements and rewards amount. I am not a patreon page that has tiers up to $50 for MORE art.. ALL my art is on the $5 tier so I hope if you are decreasing the amount of creators you support that maybe you consider that. I feel horrible like im throwing others under the bus by saying that but that is my attempt to defend my patreon page.

I also will be closing any of my existing physical product tiers because of this change. I will not be moving forward with my future restructure decision of adding more artwork to the $10 tier. And I also want to let you know that the $20 tier is still the most affordable in terms of getting previous months rewards AND still coms with the PSDS as Gumroad does not.

Here are the new tax rates on patron pledges dependent on location

I have edited my tiers wording to explicitly depict that I deal with digital product only. Im hoping this may reduce or exempt the taxing but no guarantees 

Comments

iPCM

The Sales Tax for my Country, or the Sales Tax that America forces on my Country? Because Australia has that horrible setup. We have a Local Sales Tax of 7.83%, but America forces a 29.15% Tax on us

iPCM

Hence why my US$5 Pledge is a US$7.20 Pledge

Anonymous

Hey, you shouldn’t see a decrease in your cut. I’ve seen this for awhile now on my screen in Germany. The tax is applied “after” the pledge. So a $5 pledge costs me around $6.90

Appendingfic

What you need to do is get an explanation from Patreon how they're reporting and paying this to you. In general, if you're charging $5 and they collect $6.90 in charge and tax, and report as income to you that $6.90, you have to report the income, and I have no idea how to go about reporting or paying sales tax associated with that.

Appendingfic

But if they're collecting $6.90 and still reporting $5 to you, they're probably remitting sales tax on their own and you'd report and pay taxes on the $5. The really important thing to get and lay out is the tax information they provide you (in you're in a country that does VAT things may be different).

GasaiV
>>36507263

wow interesting! I guess thats because Germany has already implimented some sort of tax on patreon there?

GasaiV
>>36517087

honestly I did not know you guys are already being charged an increased price because I only receive $4 on every $5 pledge because they take a cut. So ths is news to me that they are actually taking $3 sometimes while I thought it was $1 O.O

LeoMuscleWorld

I thought Patreon did this already, I've been paying like 21% of VAT since last year or a bit more

GasaiV
>>36531064

I am reading that they did this in the EU already . in the case nothing will change for you and thank you so much for supporting me even through that charge ! I was unaware before this

iPCM

Okay, that's better, yes. Apparently the massive sales tax here applies to Physical Artworks, which some moron Politician believed Patreon (an online service that deals in Digital products) provided. Digital sales tax is much better. Now to convince another 12 Artists to list their Art as Digital, too...

GasaiV
>>36531358

well since patrons introduction of merch sales , They probably made themselves susceptible to the laws , I just changed my wording to be clear I don't do physical rewards

nicolastgo8

Hello 👋 thanks for the information. What happens with South America ??? I m Chilean 😁

GasaiV
>>36531659

you may not be affected, just like I in Canada not quebec !

USJapan

Thank you! You most definitely are one of the most affordable in terms of what I get for sure. I have not been shy to remove artists as I grow bored or feel the value is not worth the price. You are definitely one I do not see that being an issue with ANYTIME soon. I love your work and am happy to help you as much as I can in this time

Anonymous

Everyone needs a piece of cake now and then, make sure you still get yours. Great stuff as always.