AliceFraser
patreon
An update on sales tax
🕑 Added 2020-06-18 19:58:31 +0000 UTCHallo lovely Patreonites
I wanted to give you an update on some changes coming up which may affect some of your pledges. Due to new laws passing in several countries and US states, Patreon will start charging some of you sales tax on some pledges on July 1st, depending on what reward you’re getting, and what part of the world you’re in.
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 ahead of July 1st when they go into effect.
According to the email Patreon sent me, it’s likely to be fewer than half of you, and a small amount, but if you’re running close to the line in the current environment, you might want to keep an eye on those marginal amounts and reduce your level accordingly - I don’t want your support of me to come at the cost of money stress to you.
Whether or not you will be charged sales tax depends on your location, and what is considered taxable there, so that’s fun! 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 l that Patreon collects as a result of these laws is paid directly to local governments, which I guess means they’re taking Patreon seriously as a thing now?
I’m still doing the research with Patreon to make sure I’m offering things in a way that will save you as much money as possible when it comes to sales tax - I think it will involve slightly rejigging the reward tiers, so I’ll do a little poll in the next few weeks about what things you’d like from me here. Also feel free to message and let me know.
If you have questions, Patreon’s customer support team should be able to help, or there’s a forum here with A’s and Q’s
Thank you for all of your support.
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Comments
Phil D
Yeah I think it has always been like that in the EU, I've been paying 25% tax on my Patreon amounts here in Sweden since the start as well. Still, would be a nasty shock if you're from somewhere where they don't charge it and your bill suddenly increases by a significant amount!
Keith Barnett
This isn't completely new. In the UK I've always been charged 20% VAT on pledges, and I think the rest of the EU also applies VAT at their own rates.
Thanks for the heads-up!
