xaero96

Tax changes coming to Patreon

Added 2020-05-20 18:38:11 +0000 UTC

Hi everyone,

I felt the responsibility to give you an update on some changes that are coming to Patreon which may affect some of your pledges. I apologize for most of this message being a copy/paste of Patreon's recommended sample post! You've probably read something very similar already. I found it pretty well written as is and I'm not really an expert on the topic to change too much.

Basically, 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.

Patreon is already offering some new tax-affecting settings that might let me save some of your money. I haven't looked into it yet but I'll try to do it ASAP. Let's hope it's helpful.

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 (probably June 1st).

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.

Thank you for all of your support!