VAT on Patreon is determined by the country of residence they've selected in their Profile settings or by the patron location at the time of making a subscription .

If you should not be charged VAT, you can learn how to ensure you are not charged VAT moving forward, here. 

To learn the basics of VAT, we first recommend checking out these helpful starter articles:  

• What is VAT?
• VAT - Supplying Digital Services To Private Consumers
  

How does Patreon handle VAT? 

This is general information on VAT and how we handle it on Patreon. For more info and advice on your specific situation, we recommend you talk with a tax advisor or local tax authority.

VAT (Value Added Tax) is a consumption-based tax that’s assessed on the value added to goods and services -- including digital. It’s charged as a percentage of price (so on Patreon, a $1.00 pledge with 23% VAT will have a final cost of $1.23).   

Starting in 2015, the European Union changed regulations for how VAT is calculated on sales of digital services. It is now determined by the location of the consumer, not the location of the business. This also applies to independent content creators like the ones on Patreon.

Instead of putting the burden on Patreon creators to collect and calculate VAT chargeable to EU-based patrons, Patreon will handle it.  We will automatically present and collect VAT at the applicable rate from EU-based patrons, and we will also take care of the filing and remittance of VAT payments  made by patrons for digital services provided by our creators through Patreon. Creators, whenever you see your patrons’ payments, account balances, etc. on Patreon, VAT chargeable to patrons for digital services has already been deducted.

For creators based in the EU, you will not need to remit VAT charged to Patrons for digital services on your Patreon page because we are handling that for you. If your rewards include physical goods or other things besides digital services we recommend you consult with a local tax advisor or local tax authority for information on the VAT due for those goods.   We also recommend that you consult with a tax advisor or local tax authority to confirm that by using the Patreon platform you will not be required to register for and collect VAT.

So in short -- creators, don’t worry about collecting VAT from Patrons -- we’ve got you covered and are handling everything automatically, behind the scenes.

Here’s an example of how EU-based patrons will see  what VAT is to be charged before they make a pledge:

How can I find out how much VAT I pay?

We list the amount of VAT added to your membership payments on your Billing History page.

The following table provides the VAT rate that each country requires (this list is not exhaustive, please speak with a local tax advisor on the VAT for your specific country)*:

*Note: The VAT rate percentages listed above are based on information provided by the European Commission. 

This article has covered some general information on VAT and how we handle it on Patreon. For more info and advice on your specific situation, we recommend you talk with a tax advisor or local tax authority.

What if I'm required to keep track of VAT my patrons pay?

In addition to VAT in the EU, some countries may assess a VAT or sales tax on your income based on the physical location of your patrons. It has been reported to us, for example, that Canada and Norway both do this. Please check with your local authorities for information or if this is a requirement.

Patreon does not have a way to provide the reports to you after the fact.

You can edit your benefit tiers to require new patrons to provide a shipping address. This will allow you to know where new folks are coming from.

Click here to see how to do that.

I Shouldn't be Charged VAT, How Do I Delete it from My Pledges?