The Snake Charmer
patreon
Resolving concerns about Patreon Sales Tax
🕑 Added 2020-06-29 19:26:36 +0000 UTCHi my dear Patrons,
So recently Patreon has been emailing me and some other creators on how now, they are being mandated by the govt. to apply sales tax for Patreon pledges.
I really hope they emailed you all regarding this, as that is what was told to me but in anycase, this whole step sucks big time! and i personally can't understand why the loot of sales tax has to enter this area which is purely more of a donation based platform.
So basically, 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. For example if i show that the benefit is only $1 or $2 of a $10 pledge then the tax would be only charged on that $1 or $2. The money that Patreon collects as a result of these laws are paid directly to local governments.
Some of us creators have been suggested to show the monetary benefits as less as we can by Patreon, so that our patrons are NOT CHARGED SALES TAX or charged very little. Which means not showing very high value rewards to your pledges.
So to be on the safer side and until i figure a correct way around this. I am removing all "written benefits" from my $1, $4, $10 pledges and only adding "thank you for becoming my patron" so that the system does not try to find any valuable benefits that it can charge you all. (For ex, mp3s etc)
Please be assured, YOU WILL STILL get the same benefits as per your tier, im only taking it off from the text in written form because the tax charges start from July 1st and i do not want to lose time figuring out, so im taking an action first.
I am sorry for this current confusion. But as long as i don't have any written "valuable" benefits, this shouldn't affect us, meanwhile i will find a way around this and Patreon should have sent or will send more details via an email to you all.
Please post comments on any concerns or questions you may have about this. I will address them or find an answer for you asap.
Please note: Patrons in the EU are not affected.
You all support me so much, thank you very much for that!<3
