Upcoming Patreon sales tax adjustments!
Added 2020-05-31 21:55:21 +0000 UTCHey everyone!
As you may have heard earlier this month, Patreon will begin charging sales tax for pledges as of July 1st; as a preparation, I was required to clarify the bonuses in each tier's rewards so that they could be processed more definitively by Patreon's service. Because sales tax varies depending on your location, and what is actually taxable also depends on your location, you may or may not see a change in your Patreon receipts going forward.
From what I understand based on the information provided by Patreon, less than half of Patrons should be impacted. A sample figure they provided was "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. " So based on those figures, certain things may not be taxed or at least not taxed very highly.
You also may not be charged sales tax or as much tax because of certain pledge types based on the rewards you're receiving; since I've taken the steps to clarify to Patreon what each pledge reward is, it should mean that you will not have to pay tax for things that aren't taxable in your region.
Patreon has posted a FAQ page here if you'd like to read more information directly from them!
Thank you so much for your continued support! I will continue to analyze the situation to make sure that you guys aren't being taxed for things you shouldn't be taxed for, or paying extra for things that aren't relevant.
Much love,
Koyorin
