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Hi gang!

Hope we're all having a grand day. I just wanted to give you a heads up on some upcoming changes to how Patreon applies US sales tax to some pledges.

First off, I really don't think any of this is going to apply to my patrons. I've attached a graphic - taken from Patreon's help page - which pretty clearly shows that my reward tiers will be "exempt in most states",  so it's probably nothing to worry about. Still, it's best to have all the information, right?  

Below is a template letter that Patreon have provided which lays everything out in the simplest terms. Again, I don't think it's applicable to the Thew squad - and even if it is, we're only talking a matter of a few cents - but I wanted to keep you in the loop and make sure all bases are covered.

"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.

"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."

I completely understand if you're not comfortable with any of this and it's totally your prerogative if you want to change or remove your pledge. Whatever happens, I'm always grateful for your support and forever delighted to be able to do what I do. It's all thanks to you!

Stay awesome!

-Thew

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Comments

Thew Adams

Strong point!! If VAT is being charged then I'm pretty sure US sales tax won't apply :)

Idlecogz

In Canada we have something called GST, goods and services tax. Since my tier doesn’t include a shipped “thing” and you’re not mowing my lawn.... I think we all good mate!! 🤘

Anonymous

All good as long as you are still getting the support that we all wanted to give you

JoshLogan42

My understanding of international tax law is that if we pay taxes on payments for your entertaining us, we all are entitled to proportionate portions of your eternal soul. In perpetuity. Weird choice, Patreon, but here we are.