Patreon Sales Tax
Added 2020-05-28 20:54:18 +0000 UTCHey all,
Sadly a bit of annoying news today.
Patreon has informed me that they will be having some changes that might affect your pledges starting July 1st. Due to laws in several countries and US states, Patreon will be required to start charging sales tax on some pledges starting July 1st.
Quoting from Patreon: '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.'
Not everyone will be affected - this depends on your location, and what is considered taxable there. If you’re in a location where sales tax will be required, Patreon seems to send you some information starting June 1st. As far as I understand, this does not apply to pledges in the EU since VAT was already added in 2015.
More info here.
Patreon might call these charges 'small' but I don't agree. These extra charges might be something like 50 Cents on $5 pledges and have more than just one, so I do understand if some of you are forced to lower or cancel your subscriptions. I am sorry this happened but it's beyond my control.
Thank you for all of your support.
o7
Chris
Comments
It's unclear how this affects us in the States. Some Patreon hosts are offering physical goods of some type. I doubt early access crosses the threshhold. I guess they can get cranky about behind the scenes or "time with the creator". /shrug
Matthew Zaleski
2020-06-04 15:45:27 +0000 UTCUnsure if it will affect me in Australia, but it will not change my small pledge. If my income was higher (plans for that!) it would be more. Thanks for the heads up Chris / Bismarck (excellent YT name!)
Uncle Joe (Brian)
2020-05-30 02:55:34 +0000 UTCNo worries, mate. You're good.
Minion
2020-05-28 21:57:49 +0000 UTCFrom what I've heard and read, the only taxable pledges are those that grant actually different content that could conceivably be sold. I'm guessing early access won't be taxed. I'm guessing physical items will be taxed.
Bill Lemmond
2020-05-28 21:33:40 +0000 UTCDidn’t they try the same bollocks last year already? Can’t we pester Luke from Floatplane to finally get you on that platform?
Lasse Meyer
2020-05-28 21:16:58 +0000 UTC
