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Dublin (ots) –
- Stripe Tax now enables companies to automatically calculate and collect VAT in more than 30 countries
- Two thirds of all businesses find tax compliance an obstacle to growth; the majority would introduce more products and expand into more countries if compliance were easier
- Stripe Tax was developed at Stripe’s development center in Dublin
The Stripe payment platform is introducing the Stripe Tax product today. With Stripe Tax, companies can overcome an important barrier to their global expansion: the complex international tax guidelines. The product enables companies to automatically calculate and collect VAT in over 30 countries. Companies can see exactly which goods and services have to be taxed in what amount and receive comprehensive reports for their tax returns.
Complex tax systems as cost drivers
Support in compliance with tax guidelines has been one of the most common product requests from Stripe customers for years. Digital and physical goods are taxed differently in each country. The tax regulations also change again and again and differ in their fine details and exceptions. For example, the tax rate for tickets for the same webinar varies considerably depending on whether it is a live or a recorded webinar, where the buyer is located and whether it is a private person or a company .
In a Stripe Study Last year, two-thirds of the European companies surveyed said that compliance with international tax regulations slowed their international growth. A majority of respondents also said that if their company were relieved of this hassle, they would bring more products to market and expand into more EU countries. They projected sales increases of 30 percent if the complexities of managing sales tax could be resolved.
Automated tax management “Made in Europe”
Stripe Tax was lead developed at Stripe’s development center in Dublin. The functions include:
- Tax calculation in real time: By determining the location of the end customer and the product or service sold, Stripe Tax always calculates and charges the correct tax rate. Possible changes to local tax laws are also reflected in Stripe Tax, so that companies do not have to stay up to date themselves.
- Smoother checkout: B2C companies can use Stripe Tax to reduce friction losses during checkout by using location information to calculate and display taxes there in a way that their customers are familiar with.
- Tax ID Management: For B2B companies, Stripe Tax stores customers’ tax identification numbers, automatically validates VAT IDs for European customers, and applies a chargeback or zero rate if necessary.
- Automated data reconciliation: Stripe Tax saves companies the tedious reconciliation of thousands of transactions. Comprehensive reports for every market in which a company is registered for tax purposes make tax filing and remittance easier.
Stripe Tax can be activated with just one line of code or by updating a single setting in the Stripe dashboard and forms the sales tax requirements in Australia, Belgium, Bulgaria, Denmark, Germany, Estonia, Finland, France, Greece, Ireland, Italy, Croatia, Latvia , Lithuania, Luxembourg, Malta, New Zealand, the Netherlands, Norway, Austria, Poland, Portugal, Romania, Sweden, Switzerland, Slovakia, Slovenia, Spain, the Czech Republic, Hungary, the USA and the United Kingdom.
“Nobody jumps out of bed in the morning excitedly to deal with taxes,” said John Collison, co-founder and president of Stripe. “For most companies, managing their international tax payments is a tedious process that distracts them from the real world of business. We are simplifying everything to do with VAT calculation and collection so that our users can focus on growing their business Business can focus. “
Interested parties will receive further information on Stripe Tax and the Stripe product roadmap at Stripe Sessions starting June 16, 2021. Registration can be found here: https://sessions.stripe.com/
About Stripe
Stripe is a technology platform that companies large and small use to build and expand their online business. Millions of companies, from startups to Fortune 500 companies, rely on Stripe’s software tools to accept payments, expand internationally, and develop new business opportunities. Since its inception in 2010, Stripe has been actively driving the development of the online economy, enabling novel business models and processing payments for many of the most innovative companies in the world, including Share Now, Axel Springer, Kickstarter, Shopify, Salesforce and Twitter.
Inquiries & contact:
PIABO PR GmbH
Andreas Krönke
+49 30 2576205-21
stripe@piabo.net
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