An Update on Sales Tax (Patreon)
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Hello there,
I just wanted to give you a heads up that Patreon will be required to start collecting sales tax on pledges starting July 1st. You may have noticed these taxes applied already on your subscriptions for Netflix, Twitch, or Youtube.
Not every region collects sales tax (you can find the applicable regions here), but of the ones that do, rates are generally low. For example, sales tax rates in the US range from 4-11%, so for a $5 pledge, that would be between 20 and 55 cents. Patreon has also released a feature that allows us to subtract untaxable goodies from the overall pledge total, so that will also save everyone some money, too (thanks Patreon!)
I hope you don't mind this notification, I just didn't want anyone to be surprised by this. We're all used to paying the amounts we sign up for on Patreon, so an extra governmental charge all the sudden feels a bit out of nowhere.
Thanks so much for your continued support, and I apologize for bringing some annoying news! I will have cute art for you instead of tax stuff next time.
Best,
Kate