Navigating sales tax calculation, collection and compliance is a time-consuming and, well, taxing process. But what if you could set up a way to automate these tasks off your team’s plate? We’re excited to announce our partnership with Stripe and bring you Stripe Automated Sales Tax, a new service that saves you time and eliminates the headache of managing a manual sales tax table. Stripe Automated Sales Tax calculates sales tax based on the buyer's address in 35+ different markets.
Benefits of Stripe Tax
- Get started in minutes: Get started with a few clicks in your app. Check out the help article for step-by-step and video instructions.
- Reduce risk: Protect your gross margin and prevent risk of potential fines from non-compliance by ensuring sales tax is passed to your customer at checkout.
- Automatically collect taxes: Stripe determines your customer's precise location and always calculates and collects the right amount of tax.
- Works with any payment processor: Stripe Automated Sales Tax works with all our current supported merchant processors. Your tax data can be easily exported from Stripe and imported into another system.
Stripe Tax is currently only available for the Max Classic edition, but will be coming to other editions this September. The cost is $0.50 per transaction.
Whether you already use Stripe as your primary merchant processor or use a different processor, we have step-by-step instructions and a walkthrough video to help you get started. And once you’ve registered the locations you collect taxes from with Stripe, you’re done — no other configuration is necessary.
How Stripe Tax works
When Stripe Tax is enabled, it will automatically calculate sales tax based on the buyer's billing address. Stripe Tax will take the total price of the order and the buyer's location (down to postal code or equivalent) and calculate the correct tax amount.
Once the transaction is complete, the total tax collected will be sent back to Stripe to be added to a remittance log. This log can be used to see where you have collected tax and if you have reached a threshold for remittance with that location. You can easily export all of this data and send it to your accountant or accounting software to speed up your business’s tax filing process.
Let Stripe Tax take the anxiety and uncertainty out of tax collection and remittance. Give yourself peace of mind knowing you have Stripe, a world-class processor, handling sales tax for you.