What is VAT?
Value-Added Tax (VAT) is a tax assessed on the value added to goods and services – including digital. It’s charged as a percentage of a price (e.g. a $1.00 pledge with 23% VAT will have a final cost of $1.23).
The European Union dictates that VAT is determined by the location of the consumer, not the location of the business. This applies to independent content creators, including those using Patreon. In Patreon’s case, members are the consumers.
How VAT works on Patreon
Rather than putting the burden of calculating and collecting VAT on creators, Patreon handles it for you. We present and charge VAT at the applicable rate for your eligible members. We also take care of the filing and remittance of VAT payments we process.
Even so, each country handles VAT differently. We recommend consulting with a local tax adviser for the following reasons:
- Getting information on potential VAT due if you offer physical or other goods besides digital services on Patreon
- Getting confirmation that by using Patreon, you will not be required to register for and collect VAT
How does Patreon collect VAT?
Eligible members will have VAT added to their membership payment. VAT charges are processed and remitted via Patreon – your earnings are in no way affected by the VAT we collect, as it’s in addition to the price for joining your membership. VAT will be listed and calculated for members when they get to the checkout page of the joining process.
The VAT rate members are charged depends on the location they’ve set in their Profile settings. If the member hasn’t provided this information, VAT will be applied based on their location at the time that they start their membership.
How can I keep track of the VAT my members pay?
We keep track of the VAT collected from your members, categorised by country. Here’s how you can access VAT paid on your behalf:
- Log in to your creator account
- Click on the Payouts button from the left-side navigation
- Click on the Documents tab and scroll down to the bottom of the page
- VAT collected and paid for by your members will be listed in the Sales tax section
- Click the Download button to get a breakdown of sales tax, including VAT, by the country or state in the US
This page also includes a table for any sales tax paid by members subject to additional taxes in the United States.
If you need a more granular breakdown of where individual members are located, you can add our shipping address request feature. This feature prompts members to put a shipping address on file with your membership when they join – existing members will have the option to manually add an address from their Active memberships list.
What is Patreon’s VAT number?
Patreon is registered in the following jurisdictions with the following registration numbers: