Patreon New Sales Tax (Patreon)
Content
Patreon announced that Patreon are being required by law to start adding sales tax to more patron pledges starting on July 1st, 2020. This affects patrons in some parts of the US and 17 other countries (see list).
Patreon will sent message to patron that will effect by this later next month.
Summary
- If you don't live in THESE country (or state) You will not effect by this (or until your country have a law for this) *not include EU
- If you live in THESE country (or state) you will get charge on top of pledge as sales tax in 1 July 2020
but Patreon let creator to set benefit value that are effect how much pledge that will get calculate as sales tax
I set to minimize sales tax to effect only 10% of total pledge across all tier since all patron get the same benefit
[Benefit: Promocode, Archive, Supporting]
Example
You pledge on Tier 3 [10USD] and live in California
On 1 July
only 10% of total pledge will get to calculate as seals tax because Archive benefit is a digital good
if sales tax in California is 7.75%
it will only calculate on 1USD so 7.75% of 1USD is 0.0775 USD
Patreon will charge you 10.0775 USD
*other benefit doesn't count because is a one-time reward
Thank You.