Patreon Sales Tax Update
Added 2020-05-30 23:49:07 +0000 UTCBy now you may have heard that Patreon will start adding sales tax to some of your pledges starting on July 1st. This is being done after the US and 17 other countries passed laws requiring "online marketplaces" to apply sales tax to transactions. So this will not affect us directly, but rather each of our patrons when the time comes to make their pledge. This is different from VAT (European sales tax) that Patreon already handles for patrons in the EU.
According to Patreon, less than half of all patrons will be charged sales tax, and for most, the amount will be very small. Rates here in the US on a $5 pledge would end being somewhere between 20 and 55 cents. All of this depends on where you live, and what is taxed there. If you qualify for this tax, you should be receiving an email from Patreon about this soon.
The good news is Patreon is giving us the opportunity to help you save as much money as possible. They've created advanced tax settings that we can adjust per tier, and eagle-eyed Bloodworth has already gone through them and made tweaks based on our different rewards. Obviously, we don't know yet the impact of these changes, or how the addition of these taxes will change our revenue here on Patreon, but it's nice to have options.
Changes like this are expected when dealing with a platform like Patreon. We're not thrilled that each of your pledges is going to take more change out of your pockets, but we appreciate your continued support now more than ever. If you'd like even more information, you can visit this support page on Patreon: https://support.patreon.com/hc/en-us/articles/360043055071
Comments
It's a little too in the weeds to get into the specific percentages, but since exclusive shows are offered at the $1 level, every tier has something that is probably taxable. It was really just about looking at shifting the weight of those rewards for each individual tier. -Bloodworth
Easy Allies
2020-05-31 21:32:09 +0000 UTCEven though I saw the Patreon article, I would love to see a breakdown from the EZA team regarding which tiers are going to be taxed. Seems like Blood has sniffed out a few ways to make things clearer to patrons. (Note: Even though I am from Florida, this doesn't affect my pledge. I fully expect to be taxed, at any moment, from any direction.)
Daryl Rodriguez
2020-05-31 21:18:01 +0000 UTCThanks Blood and all the allies... I may just up my pledge for you looking out for us and that you guys are all just freakin awesome. **Edit - Definitely up'd my pledge =)
Ninja_Kitty_Meow
2020-05-31 20:42:25 +0000 UTCBlood you are the best
Baircade
2020-05-31 14:32:06 +0000 UTCI'm in UK so this doesn't affect me but fact that you're giving everyone a heads-up separately speaks volumes of your character. L&R.
Psytrese
2020-05-31 04:51:35 +0000 UTCThank you, Blood!
Alexander Zyryanov
2020-05-31 03:56:19 +0000 UTCI genuinely still thought this was an Easy Update post even through the second paragraph. Even when you're not trying to mind trip me, you mind trip me, Ian.
WesFX
2020-05-31 03:04:54 +0000 UTCThanks for the heads up!
Sam Sorensen
2020-05-31 02:42:37 +0000 UTCSir, this is a Wendy's
DaleBastion
2020-05-31 01:54:07 +0000 UTCLooks like it, the VAT is annoying as well because it's 20% in the UK.
Varun Kachhwaha
2020-05-31 00:18:53 +0000 UTCAh yeah, most of Canada is spared
Logan Tawse
2020-05-31 00:11:12 +0000 UTCI'm from the EU and assumed all the US people were paying state tax already. So there is no extra tax for people in the EU that are already paying VAT?
Aaron Kirk - Kurxx
2020-05-31 00:01:15 +0000 UTCL&R
Brandon Ray
2020-05-30 23:57:05 +0000 UTCLet the government have their blood money. With you all the way.
UziSuicide666
2020-05-30 23:51:27 +0000 UTC
