Update on sales tax
Added 2020-05-20 12:13:20 +0000 UTC
Hi friends,
We want to update you on some changes that we’ll be seeing here on Patreon.
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.
Here are some short facts:
· 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 is paid directly to local governments.
We are working closely with Patreon to ensure to save you as much money as possible when it comes to sales tax.
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 soon.
We just 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 in this help center article 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 and have a lovely day!
Comments
It's all fine. You have to do what is required. I don't know why people are all in a huff about it. Everything is taxed. Saying Patreon is a donation or gift is pretty funny to me. It's a multibillion-dollar empire connecting content creators with content consumers and exchange a monetary unit for a service. I will gladly continue to pay you for your excellent service and get taxed if that is how it goes.
Takwin
2020-05-26 21:48:11 +0000 UTCthe point still stands. I give to people I back on this site because I want to help. However, if Patreon decides to place a tax on that charity then I'm out.
Kxmode
2020-05-22 01:00:12 +0000 UTCThey offer gated downloads - the PDFs - in the tiers. That would be a taxable product. There's no federal law blocking states from placing a fee on gifts, either.
Crissa Kentavr
2020-05-22 00:27:08 +0000 UTCUnfortunately, I don’t think tax authorities would consider Patreon payments to be ‘gifts’ as you’re technically providing support in exchange for a service - early access, special content, features, etc
Josef Herbert
2020-05-22 00:26:24 +0000 UTCThere shouldn't be any sales tax in the US since your videos are available freely... Although if you offer gated downloads, those would be taxed. I would prefer to not receive any of these gated downloads anyhow. I will opt out of having a tier, then, to save you guys the work. (I don't have any problem with sales tax, it's not taxed in my area, I just don't ever get the downloads anyhow.)
Crissa Kentavr
2020-05-22 00:25:45 +0000 UTCGiving a financial gift is NOT taxable and has NEVER been taxable in the history of the United States, making Patreon's move to tax donations illegal in the United States! They can't collect a tax on something the IRS says, and I quote, "A gift proceeds from a 'detached and disinterested generosity,' and is made 'out of affection, respect, admiration, charity or like impulses.'" What we give to you is a gift with no intention of ever receiving anything in return. I will be terminating my Patreon account if they actually decide to do this. I suggest you seek another service.
Kxmode
2020-05-21 02:50:06 +0000 UTCI'll happily pay any just and due tax to continue supporting you... Though hopefully I won't have to ;)
Verteiron
2020-05-21 01:22:24 +0000 UTCi love kerzgesagt
CheesyFox
2020-05-20 20:27:23 +0000 UTC/as a patron
CheesyFox
2020-05-20 20:27:02 +0000 UTChi i just joined
CheesyFox
2020-05-20 20:26:55 +0000 UTCDoes anyone else read these posts in the narrator's voice
Yelahneb Unicornucopiax
2020-05-20 15:36:20 +0000 UTCThank you for letting us know. I Patreon a couple dozen creators, you are the only one who mentioned this. (Unless a bunch of others all did it this morning and yours was just the first I have seen.) Not that it matters. I know creators and Patreon have no control over tax laws. I appreciate Patreon for dealing with the gov't BS, and will not change my support for you whether I am taxed or not. My guess is most Patreons will do the same.
Patrick W. Gilmore
2020-05-20 13:23:31 +0000 UTCNo issues with paying the taxes if I have to, as long as I'm able to keep supporting the channel and content being made. This upcoming month will make 3 months and I have no regrets over it. I did however message regarding the tier rewards since I haven't received or heard anything about and I did message the other day, I was wondering if I have to do something additional? Again I love the content and hope you all are doing well, currently waiting on a gratitude journal to come in and love the earth hoodie I bought as well. Keep up the good content.
Clemente De Hoyos Jr.
2020-05-20 12:37:44 +0000 UTCPatreon collects VAT on my payments for about two years (I could not be bothered to check my receipts). If I understand correctly if the tier has no "perks", then Patreon payment is a donation, and not a payment for a service, and therefore does not attract tax, but I may be wrong. The idea with direct payment to you is interesting, but, OTOH, I like the Patreon community and the fact that I don't have to think about payments (and you know they will arrive regularly, tiny as they might be). Is a "subscription" via PayPal a solution? But, don' sweat it. I don't mind terribly if Croatian or German government (I am not sure which one receives the tax) gets a cut from my donation to you. After all, I _am_ helping funding a service.
Dragi Raos
2020-05-20 12:32:46 +0000 UTCPlease consider adding crypto payments
Artem Ruslanovych
2020-05-20 12:24:06 +0000 UTCI DONT WANT ANY PENNY GO TO THE PARTY COUNTERING KURZGESAGT
Artem Ruslanovych
2020-05-20 12:21:34 +0000 UTCI'm in Germany and the fact that you appear to only accept payments through patreon has been bothering me since the beginning. If you'd put an IBAN on your web page, I would donate this way. Doing so would not only make sure that all my donation goes to you instead of patreon, it would also avoid this entire sales tax issue. I would like you to consider this.
Soeren Apel
2020-05-20 12:21:21 +0000 UTCThank you. You will have my continued support
Christoffer O'Nyhus
2020-05-20 12:19:29 +0000 UTCI WANT EVERY PENNY TO GO TO KURZGESAGT TEAM. HOW CAN I HELP
Ed E
2020-05-20 12:18:14 +0000 UTCThanks for the heads up :)
Addy Kaye
2020-05-20 12:16:22 +0000 UTC
