AutumnJelly

(Please read!) Patreon and sales tax requirements to pledges

Added 2020-06-29 19:18:08 +0000 UTC

I'm not sure if pledgers have received any email from Patreon that they will be applying sales tax if you are from countries applicable starting July 1. This is the computation

This is taken directly from their FAQs section. The problem is, they will be applying it on Pledgers (You!) so for a $5 Tier you might pay something like $5.50 (let's say 10%). I hate this because you are paying more than the tier which doesn't take account of currency conversions if you're outside US. Instead of having paying fixed $5 and have the burden to me, the creator and have me deducted instead, it puts the burden ON the pledger!

Just WHY!?

So here's what I did.

General support is non-taxable, however I cannot put the computation to 100% because this is required by the law and I don't need trouble from Internal Revenue or Patreon (which could also affect the Pledgers). This is my reasoning why it's 33%

Video = Already viewable on Iwara for free therefore it's general support.

Audio = Already included on Iwara without cuts for free therefore it's general support.

Quality = HD only on Patreon. Includes 60FPS, this counts as the exclusive content.

3 items then this tier is 1/3 only where tax is applicable.

I don't know how much an actual increase will be applied as it's all pretty vague but IF the burden to the pledgers is too high, I might re-adjust the HD tier price. Note that this tax is applied site-wide coming this July 1st.

Many creators might not like this as it means it's putting additional charges to the Pledges. Patreon used to pull something like this before but backpedaled from the outrage, however this time they might push through with it.