Tax laws in many countries and US states have evolved in recent years to require online marketplaces such as Patreon to apply sales tax/VAT to transactions which take place via their platform.
Patreon adds sales tax, VAT, GST or other similar taxes (collectively herein also referred to as "sales tax" or "sales tax/VAT") to member or customer payments in parts of the United States and several other countries as required by law. Review which countries sales taxes apply to here: List of locations where Patreon is collecting sales tax
The article and FAQs below include details about how sales tax applies to Patreon and what you need to know.
Who Does Patreon Charge Sales Tax To?
Whether or not you will pay sales tax/VAT as a member depends on where you are located, and what benefits the creators you support are providing. The laws and tax rates in effect in your country of residence will be applied whenever you pledge to a creator through Patreon, whether that's monthly, annually, or per thing, or an ad-hoc commerce acquisition if the benefits offered are taxable in your location.
If Patreon is charging sales tax in your location, an additional line item will be listed on your receipt. Since tax laws and rates vary from country to country and state to state, the amount will be different for different members. The tax that Patreon collects as a result of these laws will be paid directly to your local government, and there are no Patreon fees on this portion of your payment.
About sales tax
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Different jurisdictions will consider different things taxable. If you receive a benefit in return for your pledge, it is likely that it will be subject to tax. For example, many places have passed laws that make streaming content taxable so in those places, streaming video and audio would be subject to tax.
It is however useful to remember that different jurisdictions approach digital content differently and what one location deems a taxable benefit may not be consistent with the views of another jurisdiction.
If you are not receiving any benefits in exchange for your pledge or payment, the payment may not be taxable. For example, if you pledged an amount in excess of your set tier price, or you have given a pledge that falls outside of a set tier, your pledge could be deemed to not have any benefits associated with it.
- The laws about what is taxable vary by location, but in many places, digital goods and content (downloadable and/or streamed) are also taxable.
- Some members may decide to pledge outside of your set tiers. For example, you may have pledged an amount above the set tier price or the creator has given you the option to pledge without receiving pledge benefits. In many jurisdictions, this amount would be akin to a "tip" or gratuity and treated as non-taxable. However, in other jurisdictions given the conditions set or interpretation around this issue, it is not possible to treat such amounts as not taxable.
- We are not offering this as an option at this time. Note however that in several jurisdictions, sales tax cannot be included in pricing.
Details on Sales Tax: How it works in different regions and how that applies to Patreon
Which benefits on Patreon will be considered taxable?
Outside of the United States, it is common for sales of most goods and services to be subject to VAT/GST. Also, in more and more jurisdictions, cross border sales of electronically supplied or intangible services, as well as imported physical goods are subject to tax chargeable by the seller.
Within the United States, what is taxable varies greatly by location. Generally, tangible goods are taxable in all states and taxability of digital goods and services is constantly increasing.
As a rough guide, we've broadly sorted benefits into 5 categories that are each taxed differently in US jurisdictions.
| Typical Benefit Type | Examples | U.S. Status |
|---|---|---|
| Donations/Support | Support only. Languages such as "pledges whatever" | Currently exempt from Sales Tax in the majority of states |
| Professional Services | Live chats and phone calls | Exempt in the vast majority of states |
| Exclusive Community Access | Paid member-only posts, Discord, server access, polls | Taxable in roughly half the states |
| Streaming Content | Extra podcast episode per month, videos, bonus content | Taxable in roughly half the states |
| Downloadable Digital Goods | PDFs, computer game builds, downloaded color pages | Taxable in roughly half the states |
| Physical Goods | Candles, T-shirts, mugs, mailed coloring pages | Taxable in all states in which Patreon is collecting |
Where is Patreon collecting tax, and what are the tax rates?
Patreon continues to monitor laws governing the sale of online content and creation, and will continue to update our platform to ensure sales and pledges made through Patreon comply with local tax laws. A list of the main countries where Patreon is currently collecting VAT/GST is included below.
| Country | What sales tax is called | Standard Tax Rate |
|---|---|---|
| Australia | GST | 10% |
| Belarus | VAT | 20% |
| Canada (Alberta) | Federal GST | 5% |
| Canada (British Columbia) | PST + Federal GST | 7% + 5% |
| Canada (Manitoba) | RST + Federal GST | 7% + 5% |
| Canada (New Brunswick) | Federal HST | 15% |
| Canada (Newfoundland and Labrador) | Federal HST | 15% |
| Canada (Northwest Territories) | Federal GST | 5% |
| Canada (Nova Scotia) | Federal HST | 14% |
| Canada (Nunavut) | Federal GST | 5% |
| Canada (Ontario) | Federal HST | 13% |
| Canada (Prince Edward Island) | Federal HST | 15% |
| Canada (Quebec) | QST + Federal GST | 9.975% + 5% |
| Canada (Saskatchewan) | PST + Federal GST | 6% + 5% |
| Canada (Yukon) | Federal GST | 5% |
| Chile | VAT | 19% |
| Egypt | VAT | 14% |
| EU | VAT | Varies by country - see EU VAT list below |
| Kenya | VAT | 16% |
| Iceland | VAT | 24% |
| India | GST | 18% |
| Indonesia | VAT | 12% (effectively 11%) |
| Malaysia | Service Tax Sales Tax (Tangible Property) |
8% 10% |
| Moldova | VAT | 20% |
| New Zealand | GST | 15% |
| Norway | VAT | 25% |
| Philippines | VAT | 12% |
| Saudi Arabia | VAT | 15% |
| Singapore | GST | 9% |
| South Africa | VAT | 15% |
| South Korea | VAT | 10% |
| Taiwan | VAT | 5% |
| Thailand | VAT | 7% |
| Turkey | VAT | 20% |
| Ukraine | VAT | 20% |
| United Kingdom | VAT | 20% |
| United States | Sales Tax (see list of States where Patreon is collecting Sales Tax below) | Varies by State/Zip code |
* In certain jurisdictions, a reduced rate of tax may apply to certain supplies such as digital publications (e.g., ebooks). Those rates are not listed here.
** To comply with local laws, there are some countries or regions where we do not charge VAT/GST to members who are located in the same country as the creator they are paying. However, if those members support creators in other countries, they may still be charged VAT/GST on those payments if the benefits they receive are taxable in their country. For more details about this, please refer to this section: Sales Tax FAQs for Australian creators and members
EU VAT - country breakdown
| Country | Standard VAT Rate |
|---|---|
| Austria | 20% |
| Belgium | 21% |
| Bulgaria | 20% |
| Croatia | 25% |
| Cyprus | 19% |
| Czech Republic | 21% |
| Denmark | 25% |
| Estonia | 22% |
| Finland | 25.5% |
| France | 20% |
| Germany | 19% |
| Greece | 24% |
| Hungary | 27% |
| Ireland | 23% |
| Italy | 22% |
| Latvia | 21% |
| Lithuania | 21% |
| Luxembourg | 17% |
| Malta | 18% |
| Netherlands | 21% |
| Poland | 23% |
| Portugal | 23% |
| Romania | 19% |
| Slovakia | 23% |
| Slovenia | 22% |
| Spain | 21% |
| Sweden | 25% |
*In certain jurisdictions, a reduced rate of tax may apply to certain supplies such as digital publications (e.g., ebooks). Those rates are not listed here.
United States - state breakdown
| States and territories where Patreon collects sales tax | States where Patreon does not collect sales tax | |
|---|---|---|
| Alabama | Nebraska | Alaska |
| Arizona | Nevada | Delaware |
| Arkansas | New Jersey | Montana |
| California | New Mexico | New Hampshire |
| Colorado | New York | Oregon |
| Connecticut | North Carolina | |
| District of Columbia | North Dakota | |
| Florida | Ohio | |
| Georgia | Oklahoma | |
| Hawaii | Pennsylvania | |
| Idaho | Rhode Island | |
| Illinois | South Carolina | |
| Indiana | South Dakota | |
| Iowa | Tennessee | |
| Kansas | Texas | |
| Kentucky | Utah | |
| Louisiana | Vermont | |
| Maine | Virginia | |
| Maryland | Washington | |
| Massachusetts | West Virginia | |
| Michigan | Wisconsin | |
| Minnesota | Wyoming | |
| Mississippi | Puerto Rico | |
| Missouri | ||
FAQ
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As referenced above, whether you are taxed, and at what rate, depends on both your location and the types of benefits the creator is providing in the tier you have pledged to.
Within the United States, rates currently range from 4% to 14%. To make things more complex, some locations tax certain things while others don't (e.g. - "physical goods" vs. "digital downloads" vs. "digital streaming"). Outside of the United States, rates range from 5% to 27% in the countries where Patreon will charge and pay sales tax.
It is important to understand that tax rates and rules change frequently. Patreon monitors these changes, working with relevant resources as needed, to ensure that your members and customers are taxed at the current rate for their location and the benefits being provided.
- Yes, it is very likely. We expect more states and jurisdictions will pass similar laws or regulatory changes in the future. We are constantly monitoring relevant tax obligations and will keep this page up to date and with as much warning as possible.
- Sales tax applies to each transaction. For members or customers that pay per thing or one-off sales, if they are in a location that requires sales tax, and the thing the creator offers is taxable in their location, they will find sales tax applied to each monthly transaction where a paid 'thing' was posted during that month or otherwise, to the one-off transaction for which the payment is made.
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Yes. While logged into Your Memberships, click on the Personal Settings button from the left navigation and then click on the More dropdown to select Billing history. Click the dropdown arrow next to a payment amount for an individual pledge to see how much sales tax, VAT, or similar tax was applied.
Also, for any new pledge, you should be able to see the tax being applied at checkout under the Sales or VAT line in Order Summary.
- Patreon does not apply GST on payments from members and customers in Australia who pay creators also located in Australia. However, if those members and customers pay creators in other countries, Patreon may still charge them GST on those payments if the benefits they receive are taxable in Australia.