Patreon Tax Announcement (Patreon)
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Just a little update on the possible tax changes on Patreon and some thoughts around up coming audios!
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 15 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.
https://support.patreon.com/hc/en-us/articles/360043054911