This article is a reference guide for all things VAT, JCT, GST, QST, and Sales Tax settings-related. While these settings do not affect your fees or payouts, they may help some of your patrons based on their locations.
If you’re curious about which locations are impacted by sales tax, feel free to read through our article: Patreon's Sales Tax Requirements
- General information about Advanced Sales Tax Settings
- How to use Advanced Sales Tax Settings
- Frequently asked questions
- Other Sales Tax questions
Sales Tax Settings lives within each tier you've created. Head to your Membership tier editing page, and click the Edit Tier button for each tier to access sales tax settings.
We built these tax settings to give creators control over how sales tax and other similar taxes around the world, such as VAT, JCT, GST, and QST, are applied to your membership. Using these settings to give us further detail on what benefits you offer and how much we should value those things for sales tax purposes, you may save your patrons some sales tax depending on their location and the tax laws in their location.
Not all benefits are taxable in all regions. These details from you will allow us to charge tax only where necessary. Sometimes, these details may also allow us to charge tax on just a fraction of a patron’s pledge. Tax laws change frequently, and Patreon is constantly working to keep up with those changes to meet our obligations in the most creator-first way possible.
There are two steps you need to complete on each and every one of your tiers to finish the process successfully.
- List your Benefits: Select the benefits you offer from the drop-down menu or enter them manually. This step only applies to tiers created before May 20, 2020. Tiers made on or after this date have a new tier builder that has this step automatically built in. Once you’ve used the Advanced Sales Tax Settings to list your benefits on an existing tier and saved your work, the next time you edit that tier you will use the new tier builder
- Adjust benefit value: This step only applies if you have at least 2 benefits in a tier. This is where you tell us how much each benefit should be valued for sales tax purposes, using percentages. For example, if you have 2 benefits in a tier, you might decide that they are both equally valuable, and set them each at 50% of the tier’s value.
Not all benefits are taxable in all regions. By giving us more detail about the unique benefits you’re offering, you allow us to be more accurate about applying tax only where absolutely required. The settings allow you to choose from common benefit types or create a custom benefit if what you offer is not listed. When you’re finished with this step, we’ll have a clean, organized, and detailed list of what you’re offering in each of your tiers in our database to make it possible for us to charge the most accurate, and in many cases, the lowest amount of sales tax possible for your unique membership. You can update this at any time and our sales tax logic will update along with it.
Listing “General Support” as a benefit — IMPORTANT!
If your patrons are at all motivated by the idea of supporting your work, alongside or instead of wanting the benefits or content you provide, you can account for that fact in your tax settings. Pledges with the purpose of support are not taxable in some regions, but tax law cannot be applied based on your patrons’ intentions. We can only apply tax law according to whether or not a patron is receiving something taxable in return for their pledge and the value assigned to each thing.
Using the Advanced Sales Tax Settings
It is not currently possible to refund just sales tax. If you refund a patron, they will be refunded the full payment, including tax. If the patron is going to continue their membership, ensure they have set their accurate location in their patron settings. Encourage the patron to contact Patreon support and we can assist them in their sales tax concerns.
Unfortunately, our system does not currently support this. However, please contact us if you would like more information.