Stripe Rolls Out Tax Compliance Feature for Businesses in Over 30 Countries
by Fintechnews Switzerland June 14, 2021Stripe, an Irish-American payment processing platform, announced the launch of Stripe Tax to help businesses automatically calculate and collect sales tax, value-added tax (VAT), and goods and services tax (GST) in over 30 countries.
The Stripe Tax feature was engineered in its Dublin headquarters and has been in pilot mode over the last six months.
The new feature automates tax calculation and collection for transactions on Stripe, tells businesses where they need to collect taxes, and creates comprehensive reports to make filing taxes easy.
The Stripe Tax’s features include real time tax calculation by determining the end customer’s precise location, and matching that to the product or service being sold.
It also has frictionless checkout by using location information of B2C businesses to calculate and show taxes in the most familiar way to their customers.
Additionally, for B2B businesses, Stripe Tax collects the tax identification number from customers, and automatically validates VAT IDs for European customers, applying a reverse charge or zero VAT rate when necessary.
Stripe Tax also creates comprehensive reports for each market in which a business is registered to collect tax, speeding up filing and remittance.
This feature covers Sales Tax, VAT and GST requirements in Australia, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, New Zealand, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, the United States, and the United Kingdom.
In May, Stripe announced the acquisition of TaxJar, a leading provider of sales tax software for internet businesses in the US. Stripe Tax already integrates directly with TaxJar, enabling users to easily file their taxes.
John Collison
“No one leaps out of bed in the morning excited to deal with taxes. For most businesses, managing tax compliance is a painful distraction.
We simplify everything about calculating and collecting sales taxes, VAT, and GST, so our users can focus on building their businesses.”
said John Collison, Co-Founder and President of Stripe.
