Sales tax update
Added 2020-05-07 01:32:18 +0000 UTCHey everyone!
Just received an email from Patreon about some new Tax law that is going into effect July 1 That will affect some parts of the US and some countries around the world ,It doesn't seem like it should affect things too much but thought it best to share the information.
From the email:
"We hope this note finds you safe and healthy during these unprecedented times. We’re writing to give you a heads up that we’re being required by law to start applying sales tax/VAT/GST to some pledges from patrons in parts of the US and 17 other countries starting July 1st.
We know that taxes are stressful regardless of the circumstance, but right now is extra tough timing. We’re letting you know now, far in advance of this change taking affect, to give you plenty of time to feel informed, and to notify your patrons directly if you wish. Patreon will also notify all impacted Patrons on June 1st.
HERE'S WHAT YOU NEED TO KNOW:
- We estimate that less than half of all patrons will have sales tax added to their pledge, and for most of them, the amount will be relatively 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 a patron will be taxed depends on where they live (not where you are located), what benefits you offer, and what’s taxable in the patron’s location. Tax rates and laws about what is taxable vary from place to place.
- Patreon will automatically detect what’s in your tiers based on keywords, and apply the right tax rate for each patron’s location, so you don’t need to take any action and sales tax will be handled.
"
