Patreon update on Sales Tax (VAT, GST) (Patreon)
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Hello, Dear Patrons. I'm the bearer of bad news I'm afraid... :(
Patreon asked me to share this official statement of theirs with you:
Patreon announced that - required by law - they'll start adding sales tax to more patron pledges starting on July 1st, 2020. This affects patrons in some parts of the US and 17 other countries (see list).
Where is Patreon collecting tax, and what are the tax rates?
Patreon already handles the collection, filing, and remittance of VAT (European sales tax) for patrons in the EU, and has been doing so since 2015 when the laws changed in the EU. See EU VAT rates per country.
Starting July 1, 2020, Patreon will begin charging and paying sales tax in the below list of additional countries. As sales tax laws change, Patreon will add or remove regions as needed to comply with new regulation.
The affected countries are:
Australia (GST 10%), Belarus (VAT 20%), Iceland (VAT 24%), India (GST 18%), Japan (JCT 10%), New Zealand (GST 15%), Norway (VAT 25%), Canada (Quebec only QST 9.98%), Russia (VAT 20%), Saudi Arabia (VAT 15%), Singapore (GST 7%), South Africa (VAT 15%), South Korea (VAT 10%), Switzerland (VAT 7.70%), Taiwan (VAT 5%), Turkey (VAT 18%), UAE (VAT 5%), United States (36 states plus D.C. - Sales Tax - ranges from 4% - 11%)
See the whole article here: https://support.patreon.com/hc/en-us/articles/360043054911-New-Sales-Tax-Requirements-effective-July-1st-2020