Kai Nightmode
patreon
Upcoming Taxes and Patreon
🕑 Added 2020-05-31 11:00:35 +0000 UTCPatreon has been collecting tax in the EU for quite some time and starting on July 1, 2020, tax may also be collected in the following countries.
- Australia
- Belarus
- Iceland
- India
- Japan
- New Zealand
- Norway
- Russia
- Saudi Arabia
- Singapore
- South Africa
- South Korea
- Switzerland
- Taiwan
- Turkey
- UAE
Patreon will also start collecting tax in certain parts of Canada and the United States. See the full list of countries, regions, and tax rates for more info.
Although geared towards creators, Patreon has an excellent article on the New Sales Tax Requirements that explains all the coming changes. These changes include tools for creators to describe tier benefits for tax purposes. A solution that may help reduce or remove the need for tax, depending on a Patron's location and any tier benefits they are associated with. For example...
- New and existing users who donate a custom amount each month are the least likely to be affected.
- New and existing users who are a member of a $1 or $2 a month tier may be affected.
- New users who choose the $7 software tier are probably making a one-time donation to unlock software and are the most likely to be affected.
The above scenarios are an over simplification and subject to change as tax laws are updated. New tier benefits may also change how much tax may be applicable in the future.
It really is a complicated situation which is why I appreciate the way Patreon is absorbing the brunt of this complexity for creators. Deploying tools so taxes can be as fair as possible for all involved.
I would certainly rather be coding, crafting, or video editing vs. anything to do with taxes. Now that all my tiers and tax settings are in order, I can get back to work and not worry about the upcoming tax changes. ^_^
Questions, comments, or concerns? Please do let me know.
