Monday Minders - Sales Tax - Update or Cancel Pledges

It is the end of the month...thank you so much to those of you sticking with the podcast through these tough times. If you need to cancel your pledge I understand and this is the best time to do it before you get charged for next month. Just follow these steps> https://www.patreon.com/posts/37701752

If you are staying on as a patron can you please double check your payment info is up to date? https://www.patreon.com/posts/38656392

Good news on Sales Tax, for those of you who are in areas that are going to start charging sales tax, your WHOLE pledge will not be taxable, just the portions that are taxable in your area, which should be less than 50% of your pledge, since most people are just pledging value for value. Here more info about the sales taxes.

Those of you outside of the US who listen may already used to paying VAT, now some other states in the US and several other countries are starting to charge taxes.

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. 

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.

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.

Drew