Aimed specifically at automating tax calculation and collection tasks, the platform aims to help make life easier for businesses faced with the often-complex chore of working out how much tax needs to be collected. Adding versatility to the appeal is the way Stripe Tax can be used for tackling sales tax and value-added tax (VAT) as well as goods and services tax (GST).
Thanks to those variations on the tax collection theme the product will work in over 30 different countries, along with all of the American states. On top of that flexibility there is also the option for producing detailed reports from the data collected, which can then be used to file tax returns.
With tax compliance becoming increasing complicated Stripe Tax should appeal to many business owners who currently struggle with calculating tax. With growing numbers of businesses having an online e-commerce operation it’s critical for proprietors to be able to generate accurate sales tax calculations. This is particularly so in the US where nearly every state dictates that it needs to be collected from online merchants.
There are other factors that make the issue even more complex, with local online sales taxes being another fiscal issue to factor in Stateside. In fact, according to Stripe, there are currently over 11,000 different sales tax jurisdictions in the US.
European business owners are also faced with a growing tide of tax compliance bureaucracy to navigate, with many feeling that it is holding back the growth of their ventures.
The additional benefit of Stripe Tax is that is can be configured using nothing more than a single line of code, or by altering just one setting in the Stripe Dashboard area. Stripe is continuing to make enhancements to its wider product portfolio and the company has also recently acquired TaxJar as part of the expansion.
The move was made in order to bolster Stripe’s business appeal, with TaxJar having a range of sales tax software designed with internet businesses firmly in mind.