Patreon has to change sales tax handling for some Patrons soon, here's info on that (Patreon)

Published:

2020-05-07 12:38:13

Imported:

2023-04

Content

I need to give you a heads-up 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.

According to their estimates, 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 (not mine), 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 is paid directly to local governments.

Rest assured that I’m looking into this with Patreon to be able to save you as much money as possible when it comes to sales tax. I'm still trying to figure out what pledge tiers (if any) are even affected here, the information on that is still a bit scarce, but I'll add updates once I figure things out.

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 for all of your support and please understand that this is sadly something outside of my control. If it makes you feel better, Patreon has already been charging VAT for pledges by all Patrons based in the EU ever since this campaign started, due to EU legislation requiring that.

edit 2020-05-08: Made post public for more transparency.