Patreon Pledge Processing Change: Sales Tax

Hello patrons!

I wanted to pass along some information from Patreon which may affect some of your pledges.  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. The information Patreon is providing me indicates that fewer than half of all patrons site-wide will be charged sales tax, and for those that are, the amount will be small. Not all pledges are taxable in whole or in part because not all benefits you receive in your tier are taxable; this will depend on the laws in your location. 

Patreon provides me with creator controls that allow me to tell them what sort of benefits you are receiving so their tax eligibility can be accurately considered. In most states, stuff like community access and patron-only posts are not taxable. Physical items are. Digital content varies. The most obvious tier I can see being affected across the board is the Bug Club tier because they receive a physical reward. All lower tiers will depend by location but will likely be exempt in whole or in part for most of you.

This is not extra money Patreon is collecting for themselves or for me; it is paid to local governments, as sales tax is on other things you might buy. Patreon will also be sending you an email to inform you further if this affects your location.

If you have questions, Patreon has some answers here. You can also contact Patreon’s customer support team if the FAQ doesn't provide a sufficient answer here.

Thanks so much for understanding. Tax law on the internet has been nebulous and weird for a long time; changes were inevitable, and we are seeing some of that now. I appreciate your patience as this gets ironed out and goes into effect for July.