ptypoe

Boring update on sales tax

Added 2020-06-18 23:48:37 +0000 UTC

Hi Patrons,

Well, now that V 0.7 is out I can do some housekeeping. One thing to advise you guys is that Patreon is obliged to make some changes regarding sales tax, which may affect some of your pledges. 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.

They say that 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 ranges 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 is paid directly to local governments. You know…roads, public gardens, support for local arts festivals etc.… so you may even get a warm, fuzzy feeling from them taking a bit of your hard-earned money!

If you’re in a location where sales tax will be required, you should receive an email from Patreon with more information about this, but I also wanted to make sure you were aware of these changes 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.

Sorry to go all commercial on you, and I hope the sales tax thing is pretty painless for everyone.