Dead Meat Patrons - Sales Tax Heads Up (Patreon)
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Hey Patrons! I wanted to reach out to let you know that Patreon recently announced that they are now required by law to start adding sales tax to more patron pledges. This will start on July 1st, 2020. This change affects patrons in some parts of the US and 17 other countries (see list). As a result of communications with taxing authorities and the evolution of online taxation, Patreon has determined that it will have the obligation to begin charging tax in certain locations effective July 1st.
So on July 1st, Patreon will automatically apply the appropriate sales tax to each tier. Sales tax is charged based on the location of the patron, not the creator, so some patrons will see an additional line item on their receipt for sales tax starting July 1st. Since tax laws and rates vary from country to country and state to state, the amount will be different for different patrons. 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.
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 just wanted to give you guys all a heads up so that there was no confusion once that date rolls around. If you have questions about this, you should be able to find answers here. If you still have additional questions, the best place to get an answer is from Patreon’s customer support team, here.
If this increase in the amount coming out of your bank account makes you uncomfortable with your pledge, AS ALWAYS, please don't feel guilty or bad canceling. I always want to stress that I'm doing just fine and that you should take care of yourself and your loved ones first and foremost.
Thanks everyone! Be good people.