A Patreon Update: Sales Tax (Patreon)
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Eyy my lovely Cardigans,
It feels like I've been posting a lot of updates lately! But I feel like this was a really important one to share with y'all before some of you get the email from Patreon on June 1st.
The company informed me that due to new laws passing in several countries and the United States, starting on July 1st Patreon is required to start charging sales tax on some pledges. This won't affect everyone though!
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 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.
Thank you so much for supporting me. We'll hang in there together, yeah?
Best,
C