[VERY IMPORTANT] Patreon Sales Tax (Patreon)
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Hey everyone! As some of you know Patreon wants to start implementing a new "sales tax" to everything on Patreon. And they've taken an...interesting approach. Basically wanting us, the creators, to take the heat for this by having US tell YOU. It's whatever though. The following is something I copy and pasted that explains this hooey better than I can:
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.
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.
Like they said: if this is gonna be effecting you then you should have received an email from Patreon earlier this month. That being said, as a creator I can tweak the "benefits" you guys get. I'll be doing my best to learn as much about this as possible so that for those of you who DO get taxed, it's as minimal as possible.
P.S: Two things to keep in mind here
- The extra money will not be going to the creator, it will be going to some sleazy government body that just wants money.
- The amount you will be taxed should never be more than a few extra cents.