Notice From Patreon (Patreon)

 I received this notice from Patreon.

On May 6th, 2020, Patreon announced that we 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 already handles charging and paying VAT (European sales tax) for patrons in the EU, and has been doing so since 2015 when the laws changed in the EU. Over the past couple of years, many countries and many states in the United States have passed similar laws that require “online marketplaces” to apply sales tax to transactions. Although aimed at the Amazons, Ebays, Netflixes, and Etsys of the world, the way these laws were written and the way they’re being interpreted means that they’re impacting many different types of companies, including Patreon. 

The article and FAQs below will cover all the details about how sales tax applies to Patreon and what you need to know to prepare.