Maybe someone from Stripe is reading the comments and can explain: why do refunds not reduce the reported tax collected? Are we supposed to keep separate records of that?
Stripe Tax
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Re: Stripe Tax
#12This is absolutely HUGE.
If you're an indie hacker, or solo founder taxes are extremely important and you cannot ignore them if you go over a certain amount.
In the past taxes, VAT and all of that is a pain in the backside for most EU / UK businesses and most go with Paddle because of this.
I am so elated that this is now available (although through an invite), and saves a TON of time, unnecessary annoying scripts and duck tape.
Downvoters: So you can manage taxes and VAT for each different EU member state yourself manually? Is this some sort of side hobby for you? This is a real problem of many businesses.
Re: Stripe Tax
#13Really excited for this, hopefully Stripe brings out being a merchant of record soon too!
I had to look up "merchant of record" [0]. I think the implication of Merchant of Record platform-wide would be that Stripe would own the customer-vendor relationship, and that Stripe would become something like Amazon Marketplace. I agree that as a "feature" MOR has a market, but I would see risk for Stripe as being seen as a competitor to its customrs, vs as a processor for them.
[0] https://www.venable.com/insights/publications/2019/05/will-t...
Re: Stripe Tax
#14Wouldn't most online businesses just need to collect the taxes for the customers that their business operates in? Posting this on the basis that there should be no stupid questions when it comes to tax. For example; an Australian business needs to collect GST for Australian customers only. Americans accessing the Australian service would not be obligated to pay GST and as the Australian business doesn't have a US ent…
You would hope so, but no.
A good example is that the UK now requires online business to collect UK VAT on sales to UK customers, even when the seller is abroad - there are many similar rules and this will really help people, especially smaller businesses who really face big barriers in dealing with these rules.
Re: Stripe Tax
#15Wouldn't most online businesses just need to collect the taxes for the customers that their business operates in? Posting this on the basis that there should be no stupid questions when it comes to tax. For example; an Australian business needs to collect GST for Australian customers only. Americans accessing the Australian service would not be obligated to pay GST and as the Australian business doesn't have a US ent…
Paddle has a good article about this: "..the taxes apply not only to where your company has a physical presence (an office or employees) but to where your customers are based." https://paddle.com/blog/global-sales-taxes-for-software-comp...
It seems to be a huge mess. Even if you know how much to pay for different countries, registration for paying taxes can be painful.
Re: Stripe Tax
#16Wouldn't most online businesses just need to collect the taxes for the customers that their business operates in? Posting this on the basis that there should be no stupid questions when it comes to tax. For example; an Australian business needs to collect GST for Australian customers only. Americans accessing the Australian service would not be obligated to pay GST and as the Australian business doesn't have a US ent…
That's not how it works within Europe. You need to collect taxes in the country where your customer is located, you need to register with VAT instances in those countries. There are exceptions, for example up to some total revenue you may be allowed to collect local sales tax instead. This is what I've understood, but it probably gets more complicated in real.
Re: Stripe Tax
#17I was lucky to be part of the beta for my SaaS ( https://turnshift.app ) and I must say this new feature simplifies things A LOT. Especially as a EU business owner, I previously had to sync every VAT tax rate possible, use a complex workflow to know if a customer needed to pay taxes or not, link tax rates to customers, and create taxes reports for my accountant. Stripe tax does all of that automatically, based on the…
Do you feel like the value is worth with the fee Stripe is charging?
Re: Stripe Tax
#18Stripe’s product pages are so beautiful and cover the product features brilliantly.
Stripe tax should away the headache of being on the wild ride that is EU VAT as EU citizen.
Congrats on the launch!
Re: Stripe Tax
#19I was lucky to be part of the beta for my SaaS ( https://turnshift.app ) and I must say this new feature simplifies things A LOT. Especially as a EU business owner, I previously had to sync every VAT tax rate possible, use a complex workflow to know if a customer needed to pay taxes or not, link tax rates to customers, and create taxes reports for my accountant. Stripe tax does all of that automatically, based on the…
Do you feel like the value is worth with the fee Stripe is charging?
YES, considering the only best competitor in this space Paddle takes 5%.
Taxes is the reason why in the past most EU/UK businesses go to Paddle. Stripe's Tax feature now saves people who were considering Paddle a lot of time now.
Re: Stripe Tax
#20Earlier quoted context omitted.
Do you feel like the value is worth with the fee Stripe is charging?
YES, considering the only best competitor in this space Paddle takes 5%. Taxes is the reason why in the past most EU/UK businesses go to Paddle. Stripe's Tax feature now saves people who were considering Paddle a lot of time now.
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