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Stripe Tax

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Re: Stripe Tax

#291

Post by nrmitchi »

kybernetikos wrote: post #183
dangrossman wrote: post #131

Earlier quoted context omitted.

This is something people say often, but studies put the cost of accepting cash for retailers at 4.7-15.3%, which is higher than the cost to accept credit cards. If anything, it's the high cost of handling cash built into prices that's increasingly burdening credit card users in stores, not the other way around.

I would take that as an argument that we should have better 'cash' that has lower costs to use.

Tbh these are debit cards. The Durbin Amendment limited the interchange that count be charged on debit transactions (I think the average is something like 0.3% now), so everyone was pushed towards "credit" products instead.

Re: Stripe Tax

#292

Post by codehawke »

briandear wrote: post #256
gamblor956 wrote: post #248

Earlier quoted context omitted.

The law already was that the purchaser should remit use tax to the state for purchasers from out-of-state vendors. But compliance was basically non-existent; most people didn't even know that they owed use tax on such sales, much less what rate would apply. Sales tax is basically use tax, but with the burden of compliance placed on the seller. As for why the sellers' state is not entitled to sales tax: in the old-tim…

> But compliance was basically non-existent; most people didn't even know that they owed use tax on such sales As a business owner, I would ask myself “how is this my problem?” If a stare has a problem with residents not complying with a tax, I am not sure why a business in another state should care. If I buy a product from China, are they required to collect sales taxes for Montana? Of course not. So not sure why a…

Luckily, my home state of Virginia has exclusions. From what I understand, until congress acts, more lawsuits need to happen from companies challenging states to pay these bullshit taxes. VAT is also a terrible burden.

Re: Stripe Tax

#294

Post by R0b0t1 »

briandear wrote: post #256
gamblor956 wrote: post #248

Earlier quoted context omitted.

The law already was that the purchaser should remit use tax to the state for purchasers from out-of-state vendors. But compliance was basically non-existent; most people didn't even know that they owed use tax on such sales, much less what rate would apply. Sales tax is basically use tax, but with the burden of compliance placed on the seller. As for why the sellers' state is not entitled to sales tax: in the old-tim…

> But compliance was basically non-existent; most people didn't even know that they owed use tax on such sales As a business owner, I would ask myself “how is this my problem?” If a stare has a problem with residents not complying with a tax, I am not sure why a business in another state should care. If I buy a product from China, are they required to collect sales taxes for Montana? Of course not. So not sure why a…

This is my point.

It happens with brick and mortar stores, too. The MO/KS border has a large population buildup. It's totally normal to shop in the state that has the best tax rate for your goods. If you apply the ecommerce logic to this, you need to have people show ID at stores so the store can apply the right tax rate.

It seems to me the seller's state has just as much claim to sales tax as the buyer's. The seller is potentially making use of business development credits etc, etc, originating in their state.

This is an issue that falls under the federal government.

Re: Stripe Tax

#295

Post by nikon »

Silhouette wrote: post #231
pimterry wrote: post #219

Earlier quoted context omitted.

Are there some specific terms in their legal bits that you're concerned about? Personally, they've mostly been very good. The product works, it was very easy to set up and it does everything out of the box, and it's made sales tax & accountancy almost completely disappear. I have occasionally run into issues or bugs, and their API is a bit of a mess, but nothing show stopping and their team has been reasonably respon…

Are there some specific terms in their legal bits that you're concerned about? Quite a few, but to give an example from high on the list, it appears that a SaaS company would warrant that software sold through Paddle is always bug-free, accept unlimited liability via the related indemnification requirements if it isn't, and yet have no right participate in or even know about any relevant process if something goes wro…

Paddle is fundamentally different to Stripe. As you said they a merchant of record. Your customers purchase via Paddle, manage the subscription etc via them. Disputes would be via them too. Something to bear in mind.

Re: Stripe Tax

#296

Post by [deleted] »

nrmitchi wrote: post #176
TheRealPomax wrote: post #172

Earlier quoted context omitted.

Correct. But that's not what you're paying for of course, you're paying for the fact that you don't need to pay an accountant to double check these numbers: if they are wrong and the tax man comes after you, you get to hold Stripe accountable for any and all repercussions. You are paying Stripe--if you so choose--to take on the legal responsibility of getting it right.

> if they are wrong and the tax man comes after you, you get to hold Stripe accountable for any and all repercussions. You are paying Stripe to take on the legal responsibility of getting it right. Where exactly is this stated? As far as I can tell, all this does is say what taxes you should be collecting, and then collect them. It doesn't even handle (at this point) remitting payment to the appropriate jurisdication…

[deleted]

Re: Stripe Tax

#297

Post by codehawke »

So if this product does not file VATS in 50+ countries (seems impossible anyways) and it does not actually pay these fees. This product is solving a solution that no online retailer should even bother with.

Honestly, until congress fixes interstate commerce and that terrible Wayfair decision, until the VAT process is drastically simplified/unified, nobody should collect or pay these fees to anyone. When they come for it, sue.

The bottom line is this maddening confusion isn't worth dealing with for the business or the state/country.

Re: Stripe Tax

#299

Post by sireat »

jccooper wrote: post #267
sireat wrote: post #126

So how does one pay tax with this? Let's say you and your server are in Singapore. You are selling a digital product - PDF book on dynamically typed Rust... You have customers from all 50 US states and all European countries. You have 100k USD sales total. At the end of the year are you obliged to send the correct amount of tax to EACH US state and each EU country?

Yes, to the extent they require it (and you want to stay compliant.) There are companies that can handle the remittance for you; Stripe lists several on their page. Reporting requirements would probably be quarterly or monthly. In practice, almost all US states that have sales tax have a in-state sales threshold amount, usually $100k+ and/or 200 transactions, and at the level of business as per your example, you woul…

Thank you!

A bit more clear, but still seems really messy.

So if there are limits I assume you collect 150 transactions a year from California, you have to keep the tax collected until you reach 200 and send the tax for all 200?

Presumably you can't spend the money on beer and yet you also can't refund the customers either.

Re: Stripe Tax

#300

Post by weehoo »

wly_cdgr wrote: post #106
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…

The replit guy needs to study your post so he can learn how to handle mistakes the right way

What happened with the replit guy?
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