kandismon

Please Read - - - New Patreon Sales Tax

Added 2020-05-31 21:33:59 +0000 UTC

Hello my dear gemlins!

I just posted a new episode for $5+ gemlins, please check it out once you've read this post!

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I believe on June 1st some of you should be receiving an email from Patreon about a new sales tax that they are required by law to charge starting July 1st. (the whole thing is explained here)

The main takeaways from the article are:

that this tax affects some parts of the US and 17 other countries (list)
not everyone will pay this tax, it depends on a) your location and b) the content of the tier you're subscribed to.
Patreon states that the tax fee will be a very small amount, and again - depending on your location and the rewards I offer, you might not have to be charged at all

One specific example:

One reward I offer that is taxable are the PDF downloads of episodes.

Since in my Morganite ($5) tier the PDF is one of four or five rewards, I can put into my backend settings that only 20% of my content are downloads & taxable, which means that the tax will be applied to 20% of your $5 pledge, which is $1. Depending on your location this $1 is then what the sales tax is applied to, for example in Australia it's 10%. So 10% of $1 would be 10 cents that you're being charged in taxes for that tier.

Those taxes then go directly to the local governments, Patreon takes care of all that.

I hope that makes sense to you @_@)

None of this goes into effect until July 1st!

Until then I will keep reading up on those changes and I will adjust my tiers accordingly, because I want to keep the additional cost for you as low as possible, but of course I also have to be truthful about my rewards.

I'll keep you all updated on this topic as I learn more and decide how to handle the tiers. I don't want to change any of the actual rewards, but maybe structure them a bit differently, I'm really not sure yet.

If you have questions please feel free to ask! I'll do my best to reply and explain.

Thank you for your support!! ✨