How Does VAT Work on Patreon?

Please Note: VAT on Patreon is determined by patron location at the time of making the pledge.

If you should not be charged VAT, go here. 

If you're not yet familiar with the basics of VAT, we first recommend checking out these helpful starter articles:  

What is VAT?

VAT - Supplying Digital Services To Private Consumers

Here’s 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.

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:

 

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):

Country	Value-Added Tax Rate
Austria	20%
Belgium	21%
Bulgaria	20%
Croatia	25%
Cyprus	19%
Czech Republic	21%
Denmark	25%
Estonia	20%
Finland	24%
France	20%
Germany	19%
Greece	23%
Hungary	27%
Ireland	23%
Italy	22%
Latvia	21%
Lithuania	21%
Luxembourg	17%
Malta	18%
Netherlands	21%
Poland	23%
Portugal	23%
Romania	20%
Slovakia	20%
Slovenia	22%
Spain	21%
Sweden	25%
United Kingdom of Great Britain and Northern Ireland	20%

Peru

17%

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.

Please Note: 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 reward 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?

VAT is determined by your location when you either create a new pledge or edit your pledge. 

 

To remove VAT from your pledge, you can update your pledge, or delete and re-pledge to your creator while you are in a country that does not charge VAT.

 

You can update your pledge by following the steps in here. Simply click the orange update pledge button on the pledge editor– it’s not necessary to actually make changes to your pledge amount.  

 

Note: Except in extreme rare cases, Patreon does not grant refunds for VAT charged to pledges.