Is Patreon Charging Sales Tax?

Ag never mind didn’t read the full post of crimson rose

correct me if i'm wrong but proxxie probably lives in the US if dollars is able to be used with no vat cause i didn't get any so everyone pay in $ it will probably work with no vat dont hold me to that because i might be wrong though.

I'm in Australia and pay a 10% tax

r

I am paying in $ maybe that has something to do with it

Crimson Rose

Thanks for the report! This is so confusing... above, someone else in the UK reports *not* being charged VAT. At least on mine. >_<

Proxxie

I am in UK and get charged Vat so get charged the pledge ammount plus 20% VAT

Crimson Rose

Yeah... but the thing is, with a lot of folks on Patreon, it's more like you're donating money than buying a product/service. And if you're donating money, you shouldn't be taxed on it. Or only a part of what you pledge should be taxed. US law seems to capture this difference, but it looks like EU law does not. It just bothers me that you guys are paying VAT, especially since your rates are so high.

Proxxie

in EU, there's VAT on every purchase online and offline.. amount depends on what you are buying though, for example 12% on some category and 25% on another. Edit: actually, looks like that depends on country a bit and there's different categories (such as food in one, medicine in another, culture and entertainment in third one)

kazer

No tax in the US

Quiverclaw

I pay no taxes at all (US Oregon)

Solstorm

What an interesting question! I had a look and yes I was paying VAT on loads of stuff pre brexit. Now only on some stuff. So +1 for Brexit :)

Dark Rooster

Yep, 25% VAT on everything you buy in Denmark.

Waffleman

Holy crap, that's nuts. Is that rate in line with your local tax rates?

Proxxie

I'm paying VAT. 1.25 US dollars per 5 dollars.

Waffleman

Ugh, this is confusing.

Proxxie

I do remember patron saying that there would be an increase in sales tax but I'm still paying the same amount that I've always paid so I don't think there's a sales tax on mine. Maybe it's based on the amount you pay like the high tiers start getting charged while lower tiers don't (lol just kidding on that last part that wouldn't be fair)

Danielle

I'm not being charged sales tax, in MN,USA

Madking2

I'm leaning that way; my big fear is that higher-tier folks are being charged 10%+ tax, and if there's something I can do about that, then I want to. But I don't want to open a can of worms that would lead to people getting charged who currently aren't. Do you remember if you were paying VAT before Brexit?

Proxxie

Damn it I wrote a reply and deleted it by accident.... I dont pay VAT on your sub, but I do pay VAT on others. I think whether or not you pay sales tax is determined by a complicated, where are you and where am I and how do the tax laws interact with one another, dynamic. In some places you only pay sales tax on goods/services if they are bought/provided domestically and not internationally. In the US this gets even more complicated with each state having its own laws. Before I moved to the UK I lived in Texas and if I remember correctly you didnt pay sales tax on anything bought outside of Texas. That was nearly 20 years ago so take that info with a grain of salt. I pay VAT on everything from Steam. I think this is becuase they are a distributer and are based internationally. I pay UK vat on all my Steam purchases. Even purchases of gifts being sent to people in the US via steam. Honestly if I were you, I'd leave it alone.

Dark Rooster

It seems like Patreon is eating some comments? Or else maybe folks are deleting them. If yours disappeared, I didn't do it!

Proxxie