An update on sales tax
Hey friends!
We wanted to give you a heads-up on some upcoming changes 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.
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.
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 we wanted to make sure you were aware of these changes before 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.
Thank you so much for your support and friendship as we work hard on our games. We hope you enjoy being along for the journey, because we love sharing it with you!
Your friends,
Sam & Schotti
Comments (2)
Oh! This is good! I mean, not the taxes, but this is a very good update about the situation. I've been trying to figure out how to approach this topic myself, on my own Patreon, and I'm still not happy with the latest draft of it...
Patreon provided a template post, so we just adapted that. I think other than posting that, you just need to put in all the benefits for each tier using the dropdowns so Patreon can calculate the taxes more accurately.
