Important info about Patreon and Taxes - Update
Added 2020-05-28 18:42:58 +0000 UTCUpdate:
I just want to make sure everyone will see this message, as it is an important change, Patreon is now obligated to charge sales taxes on Patrons support, for most people this won't make much of a difference, but I guess if you support higher Tiers or if you support many creators this can make some impact on you.
This change is for all creators, if someone else you support haven't mention that to you be aware that you will have to pay taxes for their support as well.
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Hi, Patreon informed me about tax requirements they have apply, rather than trying to explain with my own words I will just copy and paste their message.
PATREON MESSAGE
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.
I’m working closely with Patreon to ensure I’m able to save you as much money as possible when it comes to sales tax - which is not something that’s possible with other platforms.
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.
