[Page Update] Important Update Regarding Sales Tax

According to Patreon, they will begin applying sales tax to some of the Patreon pledges. For the sake of transparency, I want let everyone know what the situation is, and how it'll impact you.

This is what I know as a content creator. Please understand that I'm not a lawyer, and what I said may not be correct. If you found any false information in this post, please leave a comment and let me know.

What you need to know

• Sales tax is added on top of your pledge. In many country, including (most if not all of) the US, it is illegal to display price with tax included. That means the financial burden is added to the patrons and not the creator.
• Sales tax is based on your location. That affects how much tax is applied to you. Some of you may not even be taxed at all.
• Only portion of your pledge is taxed. For example, if you pledge 5 dollars per month on this page, 1 dollar of it go towards access to community posts, an additional 2 dollars go towards end credit inclusion. The last 2 dollars are for bonus episode, which is considered a digital good, which is taxed in half of the states in the US. In other words, only 2 of the 5 dollars are taxed.
• What is taxable is location dependent. According to Patreon, community posts and credit are exempt from sales tax in vast majority of the states in the US.
• European patrons may see their sales tax goes down. Patreon is currently working with authorities in Europe to implemented the aforementioned tax system, where only part of your pledge is taxable.
• Sales tax will not apply If you pledge without tier reward. But if you do so, you won't have access to any of the content here, including the updates. So I don't suggest doing so.

How it will affect this page

• Some rewards may be adjusted in the following way:
• For bonus video, our current format (bonus episode) makes it taxable in roughly half of the states in the US. Depending on patron votes, it may be changed to commentary videos on past episodes.
• This makes the video falls under the "behind the scene" category. Wether or not this affects taxes is currently unknown to me. But I supposed it is worth a try.
• Similarly, script preview will likely be updated as a post, instead of a pdf download. Downloadable digital goods are taxable in half of the states, which community posts are exempt in majority of areas. Having it displayed as a community post is probably also easier for most to read.

If you want to know more about how sales tax will affect you on Patreon, please visit this link.

And if you have any questions regarding this update, or if you have any suggestions or concern, please let me know.