Update to Patreon Taxation (Patreon)

Hey guys, I'm just posting to give you a heads up that come July Patreon is updating their taxation policy now meaning they have to collect and pay tax on pledges in regions that require it.

Some of you already pay this tax (VAT for example), and others will be in areas that it won't affect (for example, only 36 of the US states charge it) but for some it'll mean a small monthly charge increase.

The reason for the change is that Patreon has more or less lost the argument that digital content does not constitute a 'good'. So if your region has a 'goods and services' tax the portion of any pledge you make that is a 'good' is taxable, even if it's just a download. For the Grove, this means the two exclusive rewards per month count.

It's all a bit complicated because who can say exactly how much you're signing up to support your creator versus just getting the reward, so each creator allocates a weighting to each benefit. I've tried to keep the tax you'll pay as low as possible while still being honest about the rewards, so with luck it may be as low as 10-20 cents extra depending on where you live.

Patreon will contact you directly about it in June but in the meantime, the full details can be found here. 

If you have any other questions let me know.