[Important] Patreon sales tax changes coming soon
Added 2020-05-30 14:31:51 +0000 UTCHey peeps, got a news update for you because Patreon has to make some changes to the way they do sales tax and I wanted to try and summarize what that entails for all of you. They're making a public announcement on June 1st and implementing these changes on July 1st, so don't worry, you've got some time to process this info!
It's quite lengthy, but you can read the entire article for yourself, if you want.
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Basically, Patreon is now legally required to charge sales tax for the stuff they do. This tax will be calculated based on the rewards that creators offer in your current pledge(s), which means you may be taxed slightly more/less or even not at all, depending on what rewards you're receiving (ex: digital downloads vs physical goods vs early access, etc.).
This sales tax will be determined by where you live, not the creator's location, and it will be between 4-11% in the US (based on state) and 5-25% in other countries. For example, on a $5 pledge, this would range from +$0.20 up to +$1.25 based on your location.
Obviously that number will go up for higher-priced pledges, but it's the same as sales tax on anything else you'd buy, it's just a few extra cents/bucks on top of the cost of the item. It's not great that y'all are being charged more money, but it's also nothing too scary. They've got some handy charts (scroll down a bit) for you to check out, so give those a once-over.
So, in summary:
- starting July 1st, Patreon will start charging a 4-25% sales tax on your pledges based on your location
- sales tax is based on the rewards included in your pledge (some may be taxed more, less, or not at all)
- refer to these charts (scroll down a bit) to find your location and see how much tax you might receive on your current pledges and adjust your spending accordingly to avoid being hit with an unexpectedly large receipt when these changes roll out on July 1st
- creators and Patreon will be working together to make sure these changes go smoothly for all of you, so please leave comments or send messages if you have any questions/concerns
I know I have a tendency to ramble, so hopefully this is condensed enough for y'all to absorb without feeling overwhelmed (Patreon's article is so damn long, lol). Patreon will be e-mailing you all on June 1st, so maybe they'll put it more succinctly. But, please leave a comment if you have any questions and I'll do my best to answer them!