Proxer

Patreon's upcoming July sales tax update

Added 2020-06-29 20:36:39 +0000 UTC

Hi everyone, you've probably gotten this copy-pasted message from everyone else, but here's one from me!

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.

(To clarify, I've been adjusting the individual values of my Tiers to reflect what is considered money given for "Support" and what is money given "with expectation of reward", coming to about 50-50. If things are working the way I'm interpenetrating, the 'support' portion of these are non-taxable, so that would probably equate to about between 10 and 17 cents for a $4 pledge.)

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.

Seriously.

Thanks.