Accepting payments vs Sales Tax
Hi folks,
Every SaaS business that starts to think about monetization at some point looks at different payment processing solutions. Hype/convenience, you name it, lots of us turn to Stripe or maybe Adyen. There is plenty of other payment processors.
And that seems to be the go-to solution for the majority of SaaS vendors.
The elephant in the room 🐘? The Sales Tax.
While calculating Sales Tax is no easy feat, it is doable. Some platforms even simplify it by supporting you with exact rate based on customer details.
The next problem is paying these taxes. That process appears to be extremely complex, time-consuming and in general, no easy to solve for a small/growing business.
This can be mitigated by Merchant of Record solutions like Paddle, Nexway and others. These entities, for a fee, handle all the complexities of the trade.
And yet, many businesses start with just Payment Processors.
What is your approach to handling Sales Tax?
Sales Tax = an umbrella for any form of tax applicable, US Sales Tax, EU VAT, etc.
MoR (PayPro Global)
Learning the ins and outs of sales tax in the U.S. may seem like a daunting task. To make it more manageable, use our sales tax guide, and learn the sales tax laws in the different states and jurisdictions: https://bit.ly/3EgpiBs
But if you’re stuck in terms of online sales tax, get in touch with PayPro Global to make the taxation procedure simple and become a fully tax compliant SaaS business: https://payproglobal.com/