Patreon and Sales Tax

Hey fam, Patreon has asked me to share the following info about sales tax and possible changes that might be coming. You should also get an email from them in a couple of days with this information.

So here's the gist: Due to new laws passing in several countries and US states, Patreon will be required to start charging sales tax on some pledges starting July 1st. 

This is not a reason to panic, I'm told. 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. 

Whether or not you will be charged sales tax depends on your location, and what is considered taxable there. Not every pledge is taxable, not all benefits are taxable in every location, and sometimes only a fraction of a pledge will be taxable. The money that Patreon collects as a result of these laws are paid directly to local governments.

I’m working with Patreon to ensure I’m able to save you as much money as possible when it comes to sales tax. I'm not sure what aspects of my reward tiers are taxable since there are no tangible products, but I'm sure they have a way to figure that out. 

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 wanted to make sure you were aware of these changes way ahead of July 1st when they go into effect. 

If you have questions, Patreon has a page here for info:  https://support.patreon.com/hc/en-us/articles/360043055071 

They also ask that, if you have further questions, please contact their customer support team. I don't have any more info than you do on this, so unfortunately, I'm not much help in the answer department. Here's their support page:  https://support.patreon.com/hc/en-us/requests/new?ticket_form_id=70716 

As always, I'm so grateful for you and for our community. Hopefully this change won't impact many of you at all, and any impacts will be small. If anything, we can be glad I never implemented that $100K tier. :D Thank you so much!