Patreon Update #1

First off, I want to personally thank everyone for the support, especially to my Patrons (new and old). I felt the need to update you all in regards to Patreon, they sent me a email that informed me that starting July 1, they are required by law to apply sales tax/VAT/GST to some pledges from patrons in parts of the US and 17 other countries.

The following is from Patreon:


  1. We estimate that less than half of all patrons will have sales tax added to their pledge, and for most of them, the amount will be relatively 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.

  2. Whether or not a patron will be taxed depends on where they live (not where you are located), what benefits you offer, and what’s taxable in the patron’s location. Tax rates and laws about what is taxable vary from place to place.

  3. Patreon will automatically detect what’s in your tiers based on keywords, and apply the right tax rate for each patron’s location, so you don’t need to take any action and sales tax will be handled.

  4. However, for creators who want to dig into the details and optimize, we are launching some advanced tax settings later this month that will allow you to do so. You will be able to override Patreon’s default settings and potentially save your patrons some taxes.

I wanted to keep everyone in the loop when it comes to anything involving your hard earned money, now to my understanding this won't largely impact you as a Patreon Pledger but as a Content Creator I felt it is imperative for you guys to know.

-Joshua Gresham aka "Gresh"


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