I’d like to share a relatively new change in the behaviour of my EU-based patrons:
Now that many of them are settled and very familiar with the Patreon platform, they’re getting in touch with me to say that it really niggles them that they have to pay 20% VAT on their pledges.
I totally agree with them.
They understand that there needs to be a paywall for the extra content I provide, so they’ve been asking if they can reduce their pledges to my minimum $3 Tier, then pay the difference by card or directly into my bank account by Standing Order.
So that my patrons remain happy, I’ve agreed to help them with this work around. It works well for me too because it means I receive more money — lower fees and no currency conversion.
ASIDE: I’ve read your 2020 roadmap for currencies — an excellent step forward.
Once my patrons lower their Tier, I send them to the Become a Supporter page on my website where they can top up their pledge using the new Recurring Payments feature from Wordpress…
…or, as I mentioned further up, I give them my bank details.
It’s not ideal — and a little bit clunky — but I wish they felt they could simply pledge through Patreon and leave it at that.
I bet Patreon wish that too! And this VAT issue can’t be good for the growth and perception of the platform?
So, I’m wondering if there’s anything in the pipeline that will enable you to remove the need to charge patrons 20% VAT on their pledges?
The topic’s become so prevalent for me, that I’ve actually added this VAT workaround as a ‘tip’ to the longstanding ‘quick note on dollars and VAT’ section on my overview page:
Never good, in my opinion, to have to highlight a potential problem from the outset.
I’ll look forward to hearing your thoughts.