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Stripe Tax

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Re: Stripe Tax

#311

Post by cperciva »

hobs wrote: post #240
cperciva wrote: post #234

Earlier quoted context omitted.

Yes. The comment I responded to said "literally all companies", not "literally all large companies".

fwiw I upvoted you because I should have wrote "a vanishingly small amount of businesses, many who are probably screwing things up pretty badly"

I suspect that the majority of businesses are small enough that their taxes are trivial and pretty harmless -- at least if you weight by count. If you weight by size -- sure, most business is big business and has complex taxes.

Re: Stripe Tax

#312

Post by edwinwee »

evangow wrote: post #245

I'm not seeing anything here about generating VAT-compliant invoices here or in the documentation. Different countries have different requirements for what must be included on the invoice and specific language to use (e.g. how a reverse-charge is supposed to be worded). There's a great overview on this here: https://github.com/wbond/vat_moss-python/blob/master/overvie...

If you're looking to invoice a customer, Stripe Invoicing is VAT-compliant. It allows you to customize your invoices according to your customers' jurisdiction requirements (like sequential numbering): https://stripe.com/docs/invoicing/customize. We're also working on providing VAT invoices after a payment too. Give us a poke if you have any questions. edwin@stripe.com

Re: Stripe Tax

#313

Post by tzs »

codehawke wrote: post #287
bsimpson wrote: post #274

Earlier quoted context omitted.

TIL states can now force out-of-state companies to collect and remit taxes.

Yeah, it sucks. However, not all goods, not all states even have an existence of a nexus. Virginia specifically exempts sales taxes of digital products delivered electronically, such as software, downloaded music, ringtones, and reading materials. The basic rule for collecting sales tax from online sales is: If your business has a physical presence, or “nexus”, in a state, you must collect applicable sales taxes from…

> If you do not have a physical presence, you generally do not have to collect sales tax for online sales.

That was how it stood before the Wayfair ruling. Under Quill Corp. v. North Dakota (1992) and others, the Court had ruled that states did not have the power to force out of state sellers to collect tax for remote sales unless the seller had a physical presence in the state.

Wayfair overruled Quill. The Court created a new kind of nexus, an "economic" nexus, and ruled that an economic nexus was sufficient to allow states to force out of state sellers to collect.

Merely selling a sufficient volume into a state is sufficient to create an economic nexus. They didn't give any hard and fast rule for deciding what is a sufficient volume, but the state involved in the Wayfair case, South Dakota, was trying to charge tax on any out of state seller that had more than $100 000/year in sales or more than 200 sales per year in South Dakota so we know that is on the "sufficient volume" side of things.

The rule for online sales tax in the US is now this:

1. If you sell online to customers in state X, you need to look up that state's economic nexus law to see what their threshold is. Here's a good place for this [1].

2. If your sales volume is not under the threshold, you need to check to see if that state exempts your particular product or service.

If you hit the threshold and there is no exemption, welcome to hell.

[1] https://www.avalara.com/us/en/learn/guides/state-by-state-gu...

Re: Stripe Tax

#314

Post by fighterpilot »

jitbit wrote: post #90

So. After 10 years in business and THOUSANDS of customer requests (I even made one myself, in-person when I met Patrick Colison at a conference) Stripe has introduced... a calculator. And you still have to do everything yourself - filing the papers and wiring money. Thanks, but no thanks. I'll stick with my current payment provider that handles _everything_. I do admire Stripe and wish I could move some day :(

Who's your current payment provider?

Re: Stripe Tax

#315

Post by devops000 »

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…

I think you still need to collect VAT ID on your website and associate it to a stripe customer

Re: Stripe Tax

#316

Post by devops000 »

The next great step would be to manage Tax collecting from Stripe Customer Portal. In this wet a website could redirect the user directly to stripe to fill all information for invoicing instead of saving locally, validating and sent them to stripe

Re: Stripe Tax

#318

Post by germanier »

spockz wrote: post #247
gamblor956 wrote: post #235

Earlier quoted context omitted.

California is not a member of the SST because it does not currently tax a number of things that are subject to tax under the SST regime. For example, digital goods are taxable in SST states but not in California. Similarly, there are a number of other product categories where CA's taxability classifications do not match the SST's classifications. Generally, the total tax they could collect from remote (non-CA) seller…

Interesting. People bemoan that the market in Europe is too splintered and that the whole of the us can be seen as one market. But all these state differences seem to at least indicate that it isn’t that simple.

Interestingly, VAT law is mostly harmonized in the EU and remittance will get even easier starting July where you can declare and pay VAT on cross-border sales to just one entity ("One-Stop-Shop").

Re: Stripe Tax

#319

Post by jackerman »

lbearl wrote: post #268

From the docs ( https://stripe.com/docs/tax/checkout ) it looks like Apple/Google Pay is disabled when Tax is enabled. I wonder if there is a technical limitation there or if that is something that will be supported soon?

Confirmed this is a technical limitation that we're working on as swiftly as possible. Drop me a note at jackerman@stripe.com and I'll let you know as soon as we've resolved this limitation!

Re: Stripe Tax

#320

Post by realityking »

Silhouette wrote: post #129
yannoninator wrote: post #19

Earlier quoted context omitted.

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.

Here's some current Stripe UK pricing, confirmed on their site today. Baseline of 2.9% + £0.20 for international card payments. (It's reduced to 1.4% + 20p for European cards.) Add 2% for currency conversion. The exchange rate used is stated as "the daily mid-market rate provided by our service providers". Add 0.5% for Billing if you're using subscriptions. Add 0.5% more if you're using this new Stripe Tax functional…

I believe the currency conversion charge can be avoided by only charging your customers in your own currency or another currency you have a bank account for. I rarely see a small merchant that takes more than one or at best two currencies.

That'd leave you with 20p + 3.9% (international) / 2.4% (European). Compared to Paddle's 5% + $0.50 that could be a good deal depending on how much of your volume happens in Europe.

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