About updates on Digital Goods Taxes (Government Enforcing)
Added 2020-06-01 15:23:58 +0000 UTCHey there,
I wanted to give you an update on some changes that we’ll be seeing 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.
Just to be clear: This is NOT Patreon's cash grab.
This is governments of certain countries eyeballing how digital goods that were previously "not taxed enough".
Anyhoo... 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.
The silver lining is that your pledge is taxed depending on where you live and your local laws regarding digital content. 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.
No one likes taxes, but I’m working closely with Patreon to ensure I’m able to save you as much money as possible when it comes to sales tax - which is not something that’s possible with other platforms.
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 I wanted to make sure you were aware of these changes way ahead of July 1st when 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 for all of your support.
Kindly,
-Tracy.
Comments
Some states collect internet sales tax. Others don't That's what that list in the Patreon article is. But what you fail to understand is that each internet PRODUCT (Patreon benefit) is taxed differently. Some states tax streaming videos or music, some tax digital books or games, and all states tax a physical reward mailed to the patron. Patreon did not give the list of states that would tax your fans for the digital comics they get from you. Their article gives the wrong impression, and could scare away fans who might not be taxed at all.
Ars Gratia Artis
2020-06-02 23:54:23 +0000 UTCWhat kind of errors?
Tracy Scops
2020-06-02 22:55:43 +0000 UTCNo, Tracy, they don't. They list the states where they will collect 'sales tax'. But each product is taxed differently. If that's the digital product tax list, it's full of errors.
Ars Gratia Artis
2020-06-02 22:50:29 +0000 UTCActually, they do: https://support.patreon.com/hc/en-us/articles/360043055071#h_5f4e31eb-d80c-4a8c-9025-793ca312b8c9
Tracy Scops
2020-06-02 22:34:51 +0000 UTCPatreon doesn't list the states that tax digital goods, so here it is. https://quaderno.io/blog/sales-tax-digital-products-us/ https://blog.taxjar.com/sales-tax-digital-products/
Ars Gratia Artis
2020-06-02 05:24:51 +0000 UTCYes.. let's hope we have politicians who spend our tax money wise.. for to make all our countries first again. *wink*
Arcorn
2020-06-01 18:31:28 +0000 UTCThanks for the heads-up, Tracy.
Quwykxz
2020-06-01 17:30:12 +0000 UTC
