Head’s up: Patreon to start charging sales tax.

The good-ish news? My decision to have a single tier is going to save my readers quite a bit:

If the patron is not receiving any benefits, the pledge is not taxable in most places. For example, any pledge where the patron didn’t select one of your tiers, and any amount of money added on top of the tier cost is not in most places taxable. One notable exception is the EU, where we are currently required to apply tax (VAT) to all pledges regardless of whether the patron is receiving any benefits. We are working with EU tax authorities to secure reductions and exemptions for support-based pledges in the future. 

I have a single tier for $1, and it’s pretty explicitly a ‘first-look’ tier. I have a history of eventually giving this stuff away, so even if Patreon decides that my PDFs are taxable income they still can only ding my readers to the tune of the individual US state sales tax, which works out to three to seven cents a month. And if they try otherwise, I can contest that with an absolutely clear conscience, because I’ve had only the one tier since the day I signed up. This isn’t a situation that I’m now trying to evade, in other words; it’s merely one that legitimately doesn’t fully apply to me.

But I’ll keep an eye on it nonetheless.

3 thoughts on “Head’s up: Patreon to start charging sales tax.”

    1. No, they’re going to charge you an extra seven cents, probably. Which will lose me patrons, most likely. Nobody’s fault, really.

      1. Really? I can think of many people whose faulit it is. Beginning with anyone who thinks such a regressive thing as a ‘sales’ tax is a good thing.

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