Precinct Omega

Boring but Important stuff about Sales Tax

Added 2020-05-28 20:43:28 +0000 UTC

Some patrons are going to be affected by new laws about sales tax, passing in several countries and US states. Basically, Patreon will be required to start charging sales tax on some pledges starting July 1st.

If you're in the UK, this doesn't affect you, so you can stop reading now.

What follows is from Patreon, so those of you who support several campaigns will see this message a lot. Sorry about that:

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 paying close attention to what Patreon tells me about this issue to ensure I’m able to save you as much money as possible when it comes to sales tax - which is not something that’s possible with other platforms.

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, you should be able to find answers here. If you still have questions, the best place to get an answer is from Patreon’s customer support team, here.