When Diplomacy Fails Podcast
patreon
The Dreaded Tax Man is Here...
🕑 Added 2020-05-28 20:39:58 +0000 UTCUrrrgh, taxes...
Hi history friends, some meh news I'm afraid, so let's get it out of the way as quickly as possible.
Basically, from 1st July, Patreon will be forced to charge sales tax on certain parts of its processes, mostly through pledging patrons. This means that for some of you, another few cents will be tacked onto the price you're already paying, which sucks.
This isn't due to Patreon being annoying [again!] - actually, it's due to new laws passing in several countries and US states, but of course, this doesn't make it any better really. In practice, though, you won't notice too much of a difference, and in fact, the examples Patreon itself give make me optimistic.
Less than half of all patrons will be charged sales tax, and for most, the amount will be very 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. Whether or not you will be charged sales tax depends on your location, and what is considered taxable there. Not every pledge is taxable, not all benefits are taxable in every location, and sometimes only a fraction of a pledge will be taxable. The money that Patreon collects as a result of these laws are paid directly to local governments, (not me or WDF towers unfortunately).
Rest assured, Patreon do have some useful levers in place, and I’m working closely with Patreon to ensure I’m able to save you as much money as possible when it comes to sales tax - nobody wants to pay any more money for what they love, especially at a time like this, and I'm utterly mortified that this has come up, but I suppose we must follow the rules...
If you’re in a location where sales tax will be required, you should expect to receive an email from Patreon with more information about this very soon, but I wanted to make sure you were aware of these changes way ahead of July 1st when they go into effect.
If you have questions, you should be able to find answers here. If you still have questions, the best place to get an answer is from Patreon’s customer support team, here.
Unfortunately, the tax man always finds a way to get you in the end, but I understand this isn't good enough. If you decide to cancel your pledge on this basis, please let me know you intend to do so - and please don't feel bad for doing so either. You've already been incredibly generous, and I'm bowled over that more than 350 people are now supporting this show financially, and none of them are my family!
That's it really; I hope you're doing well otherwise, and I look forward to talking with you in the Facebook group, on the Lyceum app or anywhere else.
Your history friend,
Zack
Comments
Anthony Molloy
No worries mate. I will stick with you. What's another 10% between mates. You just keep on doing what you do best. I love your work and if my government want to tax me, that's not your problem. Thanks for all the please you keep giving. Cheers Tony
Luke Russell
I am sticking with my pledge and have just signed up to support two other podcasters, spread the wealth and support the talent I say!
Luke Russell
The Tax Person will have their pound of flesh, expect VAT to rise to pay back the cost of COVID-19 😢
Dionisio Mulone
Thanks for the head's up. Will check.
Jeroen van Nieuwenhove
OK sorry, I just checked the list and it indeed does not concern EU patrons. Welcome to the club, new sales tax inflicted patrons! :-)
Jeroen van Nieuwenhove
Hi Zack, I'm a bit confused here. EU patrons were already paying VAT on their Patreon pledges. I suppose this does not concern us. Were I to pay sales tax on top of the VAT, I would be a bit miffed ;-) Kind regards, Jeroen
