New Tax Requirements on July 1st

Hey y'all!

So I know my title may be a little disconcerting and honestly I have no idea why I forgot to post about this but per law, Patreon is going to start charging sales tax on pledges. I know some of y'all who are based in the UK or other countries already pay VAT on your pledge so if you're not in the US, please ignore this post!

For everyone else, basically due to new laws pertaining to Patreon in the USA, Patreon will be required to start charging sales tax on some pledges starting July 1st.  Less than half of y'all 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 best way I can explain this is in the scenario of my old job. I used to run a billing department for a major telecommunications company and in one of our markets, the local government had brought up the sales tax so peoples bills increased and they'd call in. We'd kindly explain that these additional fees were not added by our company but by the local government and we had no control over it.

With that said, whether or not you will be charged these taxes will depend on where you live, 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.

I do have to stress that whatever money is collected in sales tax does not go to Patreon, or even to me as the creator. It goes to whatever local government you belong to.

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. 

I appreciate y'all so much!

-M