IMPORTANT PLEASE READ: New Patreon Changes ( updated )
Added 2020-05-07 15:24:43 +0000 UTCThese are changes to Patreon as a website and I would like you to read my post about it here in full.
Patreon has now been required by law to charge sales tax on pledges based on the country you pay from, this means your pledge amounts MAY go up slightly as tax will now be applied on it ( The US ranges from 4% - 11% while Canada is 13% , etc)
This means starting July 1st your $5 pledge or so here could be $5.20 - $5.65 or so depending on where you live and what your areas sales tax is.
I want to write this to let you guys know this is going to happen.
I want to give myself credit and back up MY patreon by saying while I understand a 4% - 13% ish increase is unexpected and can be the difference from being affordable to not affordable I want to say I 100% believe my patreon is one of the more affordable in terms of low pledge requirements and rewards amount. I am not a patreon page that has tiers up to $50 for MORE art.. ALL my art is on the $5 tier so I hope if you are decreasing the amount of creators you support that maybe you consider that. I feel horrible like im throwing others under the bus by saying that but that is my attempt to defend my patreon page.
I also will be closing any of my existing physical product tiers because of this change. I will not be moving forward with my future restructure decision of adding more artwork to the $10 tier. And I also want to let you know that the $20 tier is still the most affordable in terms of getting previous months rewards AND still coms with the PSDS as Gumroad does not.
Here are the new tax rates on patron pledges dependent on location
I have edited my tiers wording to explicitly depict that I deal with digital product only. Im hoping this may reduce or exempt the taxing but no guarantees
Comments
Everyone needs a piece of cake now and then, make sure you still get yours. Great stuff as always.
2020-05-09 01:31:59 +0000 UTC<3
GasaiV
2020-05-08 21:04:08 +0000 UTCThank you! You most definitely are one of the most affordable in terms of what I get for sure. I have not been shy to remove artists as I grow bored or feel the value is not worth the price. You are definitely one I do not see that being an issue with ANYTIME soon. I love your work and am happy to help you as much as I can in this time
USJapan
2020-05-08 18:28:56 +0000 UTCyou may not be affected, just like I in Canada not quebec !
GasaiV
2020-05-07 23:19:27 +0000 UTCHello 👋 thanks for the information. What happens with South America ??? I m Chilean 😁
nicolastgo8
2020-05-07 23:04:36 +0000 UTCwell since patrons introduction of merch sales , They probably made themselves susceptible to the laws , I just changed my wording to be clear I don't do physical rewards
GasaiV
2020-05-07 23:03:22 +0000 UTCOkay, that's better, yes. Apparently the massive sales tax here applies to Physical Artworks, which some moron Politician believed Patreon (an online service that deals in Digital products) provided. Digital sales tax is much better. Now to convince another 12 Artists to list their Art as Digital, too...
iPCM
2020-05-07 22:59:32 +0000 UTCI am reading that they did this in the EU already . in the case nothing will change for you and thank you so much for supporting me even through that charge ! I was unaware before this
GasaiV
2020-05-07 22:58:34 +0000 UTCI thought Patreon did this already, I've been paying like 21% of VAT since last year or a bit more
LeoMuscleWorld
2020-05-07 22:54:06 +0000 UTChonestly I did not know you guys are already being charged an increased price because I only receive $4 on every $5 pledge because they take a cut. So ths is news to me that they are actually taking $3 sometimes while I thought it was $1 O.O
GasaiV
2020-05-07 22:11:16 +0000 UTCwow interesting! I guess thats because Germany has already implimented some sort of tax on patreon there?
GasaiV
2020-05-07 22:10:06 +0000 UTCBut if they're collecting $6.90 and still reporting $5 to you, they're probably remitting sales tax on their own and you'd report and pay taxes on the $5. The really important thing to get and lay out is the tax information they provide you (in you're in a country that does VAT things may be different).
Appendingfic
2020-05-07 18:37:24 +0000 UTCWhat you need to do is get an explanation from Patreon how they're reporting and paying this to you. In general, if you're charging $5 and they collect $6.90 in charge and tax, and report as income to you that $6.90, you have to report the income, and I have no idea how to go about reporting or paying sales tax associated with that.
Appendingfic
2020-05-07 18:34:46 +0000 UTCHey, you shouldn’t see a decrease in your cut. I’ve seen this for awhile now on my screen in Germany. The tax is applied “after” the pledge. So a $5 pledge costs me around $6.90
Lyrical
2020-05-07 15:40:43 +0000 UTCHence why my US$5 Pledge is a US$7.20 Pledge
iPCM
2020-05-07 15:36:34 +0000 UTCThe Sales Tax for my Country, or the Sales Tax that America forces on my Country? Because Australia has that horrible setup. We have a Local Sales Tax of 7.83%, but America forces a 29.15% Tax on us
iPCM
2020-05-07 15:35:33 +0000 UTC
