Jakkal

Patreon and Sales Tax

Added 2020-05-29 19:04:39 +0000 UTC

So, Patreon has sent out some letters and they're supposed to send it out to Patrons starting June 1st. But they've advised us to let you guys know in advance.

Here is what Patreon has suggested we post to our patrons. I didn't write this, and I can't answer questions about it. I don't have any more information than you guys right now and I don't know who's going to get hit by it.

(They wrote this out to make it look like it's from creators but I didn't write it even if it's in first person).

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 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.