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Hey guys, for those of you who aren't Patreon creators yourselves or in case you haven't been notified by other creators already, Patreon's being required to follow tax laws as applicable on varying pledges come July 1st.

Theoretically less than half of patrons will see this charge when the change happens and it'll pretty much be no different a % addition than anyone's already familiar with in their own U.S. state, as an example.

In any case, Patreon's got its own FAQ on the matter that summarizes and details things where it applies for pledges here if you wanna see if you're included: https://support.patreon.com/hc/en-us/articles/360043055071  

-Some background info below for those that don't typically follow tax law, you can skip if you want. I figure since I spent days digging into this stuff at the end of 2019 since I personally operate as a registered business, may as well share the knowledge for those to whom it probably helps. Mainly concerning the U.S. but other countries are doing their own thing too-

As a more specific kinda point on the matter, (and especially extra relevant to any of you who also do digital freelance work in general), if you're unfamiliar, I'm 90% sure that this is related to what's been going on over especially the last couple years.  For quiiiite some time, most states have been actually shorted tax revenue significantly with the shift of a lot of businesses towards digital. 

However, the sheer variability of the digital ecosystem has meant there's no easy way to account for it all.  Therefore many states have created their own definitions and rules to apply sales tax to digital products or digital services (not necessarily the same thing on paper), and one or the other, or both will be subject to tax on a per-state basis. Sometimes it goes into effect if there's any tangible item attached to the service. Most of them apply only when the business deals in a total of tens of thousands of dollars to a given state in that year, or some states (iirc, Kansas specifically) are crazy and are waiting for you to pay sales tax during that year for digital stuff going from any other state to one of their residents after a single dollar.

Most of these are more relevant and in effect around 2018, some states kicking things into action by late 2019, and so on. 

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Anyhow, that chunk of text all said, just wanted to give you guys a heads up since as far as I'm aware, only creators have definitely been notified so far but Patreon should be issuing updates to everyone else in due time.

It goes without saying but I'm absolutely grateful for all y'all's support but especially in these crazy times make sure you're taking care of yourself first and foremost, so no worries if you end up needing to adjust for anything as things move forward!

And with that said, I'm goin' to sleep, lol.  What even is a proper sleep schedule?

Comments

QuantumAge

I don't want to say that I'm lucky because I'm from germany, but I pay already 19% VAT on my Patreon bill. Wanna say for me it's not a difference. XD

nawka

Haha, yeeeah I've heard a thing or two about VAT, afaik that's been active for a much longer time already so most in that zone won't see any change coming