roy12
patreon
An update on Patreon pledges tax
🕑 Added 2020-05-29 00:30:25 +0000 UTCHello everyone,
I wanted to give you an update on some changes that we’ll be seeing which may affect some of your pledges. Due to new laws passing in several countries and US states, Patreon (not me, I hate taxes) 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 (they're not very specific, but maybe it'll affect only people selling things). 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 with Patreon's tools 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. I set all the pledges to General Support, this should actually make them not taxable, or so they say, but we'll see.
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.
Sadly, there's no way for me to take the hit like it was possible the last time with that other taxation they wanted to do. I'll absolutely understand if you want to remove your pledge because of this, so don't sweat it.
Have in mind this will affect all your pledges, so make sure to review what you're pledging to, other creators will probably tell you about this before June 1st, which is when Patreon will be sending the emails to let you know about this.
Thank you for all of your support.
Comments
Thank you for the heads up.
