A quick VATMOSS related update and question for those using this crowdfunding platform, whether as creators or supporters.

Patreon are now clearly adding the VAT due at the ‘customer’s’ location to the pledges people are making. So someone in the UK looking to support a US creator at $5 a month now sees they’ll actually pay $6 – of which $1 goes in tax.

This certainly relieves creators of the headache of registering for VATMOSS and processing individual returns.

But is it going to have an impact on patrons’ willingness to support them?

And I very much want to see if the VAT is ONLY being added where the creator is supplying the patron with something via digital means; an ebook, an art file, a music file or similar.

Or is everyone being charged VAT, even when the buyer and seller are in the same country, on the basis that Patreon’s supplying the digital service of managing the crowdfunding and that’s what’s now subject to VAT? In which case, should the patron be bearing all that cost when the creator is the one offering their wares or services via this platform?

Please could those of you who use Patreon let me know how you’re seeing this work in practise, and particularly about any negative feedback or drop-off in support, either in comments to this post via email if you prefer (see contact info here)

Or get in touch via Twitter or Facebook – whatever suits you best. And spread the word.

Many thanks.