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Stripe Tax

stripe.com

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61–70 of 383 posts

Re: Stripe Tax

#61

Post by eps »

chinathrow wrote: post #6
admissionsguy wrote: post #3

Very happy to see this, it is such a necessary feature. I was recently looking for an option to enable VAT calculation in Stripe and couldn't believe it wasn't there. Now it is, and it looks very well done as Stripe's features usually are. But 0.5% fee per transaction is.. steep.

Yes, the 0.5% adds up. 0.5% for Billing, 2.9% + 30c per transaction, more if you add e.g. fraud for teams etc. Stripe is great and I use it too, but the way they charge you (a percentage of your revenue) is simply not that fair in the long run while their workload has a fixed cost per transaction.

Don't forget they also force-convert payout wires to your native currency if you aren't in the US. Even if you operate mostly in USD, have USD accounts, etc.

Re: Stripe Tax

#62

Post by hmoy »

Naga wrote: post #56

That looks great, but that's a ridiculous pricing scheme. If you invoice $100k in a year, you're paying $4000 to Stripe to manage your sales tax. A lot of the issues with sales tax are not knowing your regulatory requirements and set up. I'd say that's probably worth $4k, but then going forward you still have to pay them that amount. I'd say it would be more worthwhile to pay an accountant to do that for you, and sav…

$4k? Isn't $0.4k as it's 0.4%?

Re: Stripe Tax

#63

Post by adwww »

hmoy wrote: post #62
Naga wrote: post #56

That looks great, but that's a ridiculous pricing scheme. If you invoice $100k in a year, you're paying $4000 to Stripe to manage your sales tax. A lot of the issues with sales tax are not knowing your regulatory requirements and set up. I'd say that's probably worth $4k, but then going forward you still have to pay them that amount. I'd say it would be more worthwhile to pay an accountant to do that for you, and sav…

$4k? Isn't $0.4k as it's 0.4%?

Bad look for an accountant!

Re: Stripe Tax

#64

Post by invisible »

Naga wrote: post #56

That looks great, but that's a ridiculous pricing scheme. If you invoice $100k in a year, you're paying $4000 to Stripe to manage your sales tax. A lot of the issues with sales tax are not knowing your regulatory requirements and set up. I'd say that's probably worth $4k, but then going forward you still have to pay them that amount. I'd say it would be more worthwhile to pay an accountant to do that for you, and sav…

I'm not sure if I'm missing your comparison, but an accountant doesn't calculate how much/which tax should be paid in real-time based on the business and the user's location and then automatically account for that.

I don't know how much it's worth, but properly supporting tax takes a lot of effort to do correctly in real-time.

Re: Stripe Tax

#65

Post by nybble41 »

Vespasian wrote: post #52

Do they offer a way to set a final price including taxes? In many jurisdictions your advertised price (e.g. for German users on your german page) needs to include taxes.

How does that work when the amount of the tax depends on the location? Do your visitors need to enter their billing & shipping information before they can browse your site?

Re: Stripe Tax

#66

Post by jerrre »

Naga wrote: post #56

That looks great, but that's a ridiculous pricing scheme. If you invoice $100k in a year, you're paying $4000 to Stripe to manage your sales tax. A lot of the issues with sales tax are not knowing your regulatory requirements and set up. I'd say that's probably worth $4k, but then going forward you still have to pay them that amount. I'd say it would be more worthwhile to pay an accountant to do that for you, and sav…

Your accountant is not going to build a system for you that verifies VAT IDs and can automatically calculate the tax % on check out I think?

Re: Stripe Tax

#67

Post by mytailorisrich »

vvoyer wrote: post #5

I 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…

The downside is of course that Stripe takes over more and more of your important infrastructure. A question should always be how to include several suppliers and/or how to change supplier in order not to put all in your eggs in a single basket.

Re: Stripe Tax

#68

Post by maccard »

Naga wrote: post #56

That looks great, but that's a ridiculous pricing scheme. If you invoice $100k in a year, you're paying $4000 to Stripe to manage your sales tax. A lot of the issues with sales tax are not knowing your regulatory requirements and set up. I'd say that's probably worth $4k, but then going forward you still have to pay them that amount. I'd say it would be more worthwhile to pay an accountant to do that for you, and sav…

> If you invoice $100k in a year, you're paying $4000 to Stripe to manage your sales tax.

The pricing on the page says 0.4% - that's $400/year not $4,000

> Now, if you're making $1 million a year, that's $40k It's $4,000 by the above.

> compared to a few thousand you'll pay your accounting firm to do it.

It's not _just_ the money you pay the accountant to do it once, you need to get all of the data about where the customer is purchasing from to your accountant in a format they can use. Also, depending on your accountant, international sales tax is unlikely to be their forté - they might handle different states, but can they handle the varying rules in EU countries?

Re: Stripe Tax

#69

Post by Fraaaank »

yannoninator wrote: post #12

This 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 a…

Isn't the EU B2C tax burden solved by the introduction of the one stop shop per July 1st of this year?

https://ec.europa.eu/taxation_customs/business/vat/oss_en

Re: Stripe Tax

#70

Post by kilbuz »

Naga wrote: post #56

That looks great, but that's a ridiculous pricing scheme. If you invoice $100k in a year, you're paying $4000 to Stripe to manage your sales tax. A lot of the issues with sales tax are not knowing your regulatory requirements and set up. I'd say that's probably worth $4k, but then going forward you still have to pay them that amount. I'd say it would be more worthwhile to pay an accountant to do that for you, and sav…

Obligatory Office Space -- https://www.youtube.com/watch?v=3fGHaVn5rGo
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