The article and FAQs below will cover all the details about how sales tax applies to Patreon, and what you need to know to prepare.
The amount of sales tax a patron pays depends on where they are located, and what you offer in your tiers. The laws and tax rates for that patron’s location will be applied whenever a patron pays the money through Patreon, whether that’s monthly, annual, or a one-off item.
If the advanced sales tax settings are not used, Patreon will automatically detect what’s in your tiers, and apply the right tax rate for each patron’s location. This may mean we apply sales tax to your whole tier rather than just the amount you have told us relates to taxable benefits.
Patreon collects, files, and remits sales tax (also known as VAT in many countries). We continue to monitor rules that govern the sale of online content and creation to ensure sales and pledges made through Patreon comply with local tax laws.
An overview of the standard sales tax rates per jurisdiction can be found below:
|United Kingdom of Great Britain and Northern Ireland|
* To comply with local laws, there are some countries or regions where we do not charge VAT/GST to patrons who are supporting a creator located in the same country as them. However, if those patrons support creators in other countries, they may still be charged VAT/GST on those pledges if the benefits they receive are taxable in their country. Affected regions: Belarus, Quebec, Australia. For more details about this, please refer to this section: Sales Tax FAQs for Australian creators and patrons
** Please note Canadian provinces may add local tax in addition to the federal rate
|Country||Value-Added Tax Rate|
|United Kingdom of Great Britain and Northern Ireland||20%|
Canada - province/territory breakdown
|Manitoba||5%||7% (beginning Dec 1, 2021)||12%|
|Prince Edward Island||15%||15%|
What is the rate being charged?
Will more states/countries start requiring Patreon to charge sales tax in the future?
What are the new advanced tax settings and how will they save patrons money?
Should patrons in Australia that support a creator in Australia be charged GST?
We’ve been in touch with tax authorities in Australia to help clarify this point, and we’ve updated our help articles to make it clear that we will not apply GST on pledges from patrons in Australia that support creators in Australia. However, if those patrons support creators in other countries, they may still be charged GST on those pledges if the benefits they receive are taxable in Australia.
Do I as a creator need to be registered for GST?
If GST already applies to your business under existing rules (i.e. you are an Australian-based merchant registered for GST selling digital services or digital products), then you will continue to be responsible for GST on these sales, instead of the EDP operator (Patreon). The Australian Taxation Office website has more information available on merchants who charge GST.
If I don’t earn enough from my business to meet the threshold for GST, should my patrons be charged GST?
For creators located in Australia, GST from Australian patrons will remain your responsibility. Patreon will not collect GST from patrons in Australia on pledges to Australian creators. That said, regardless of Australian GST thresholds, Patreon is still, as a business, responsible for collecting and paying sales tax/VAT/etc. from patrons that pledge to you from certain countries outside of Australia.
You must register for (and begin collecting) GST when your business or enterprise has a GST turnover (gross income minus GST) of AUD$75,000 or more ($150,000 per year or more if you are a nonprofit). Go to the ATO website for additional information.
What is subject to GST within Australia?
GST tax applies to a very broad range of things. Technically the law states “any form of supply whatsoever,” which extends well beyond the scope of “goods” and “services”. That means tangible and intangible goods as well as any provision of admission or access or information are subject to GST. However, under Australian law, GST would not apply to any payment made that is NOT in connection with a supply of anything. In other words, General Support, which you can add as a benefit using our advanced sales tax settings, is NOT subject to GST. Also, any transaction of multiple items in one payment that contains separately identifiable parts is a “mixed supply” under Australian law. This means you can use our advanced sales tax settings to adjust the value of your benefits to distribute the pledge amount between the different benefits in each tier, so we can apply the GST only on the taxable portion.