How is everyone handling tax compliance? (~2 months since launch, $3k in revenue, no idea what I'm doing lol)
Hey everyone!
Long time lurker, first time poster lol
My name is Tom, I make web dev content on YT and TikTok under the name @tomisloading.
~2 months ago I launched a website called Hover (www.hover.dev) off the back of my content, won't go too deep into it here but it's an animated UI component library for React, Tailwind CSS & Framer Motion if anyone wants to check that out!
Main point though is that it's been a relatively solid launch, I've done a bit under $3k in revenue between Hover and some templates I launched at the same time which I'm selling on gumroad (bit over 2k for hover, ~$600 for the templates) and I have ABSOLUTELY NO IDEA what I'm doing in terms of sales tax/VAT/GST.
For anything on Gumroad, its nbd. Gumroad acts a merchant of record and handles all of that tax compliance for you.
Stripe, on the other hand, offers Stripe Tax. This service COLLECTS sales tax anywhere that you're registered, but doesn't remit.
I've done a bit of smashing my face into it, learned a bit about VAT, looked at thresholds for the U.S. (haven't hit any yet), but tbh I'm still entirely lost.
I've considered just switching to Paddle since they act as a Merchant of Record, but I'd really rather not if there's an easy enough way to handle it without it.
I've seen TaxJar for the US and some other service whos name I can't remember for VAT, but that only accounts for the US and EU. What about all of the other countries? Is everyone ACTUALLY manually paying tax in every country where they make a sale?
The bit of feedback I HAVE gotten is to not worry about it outside of the US for the time being, which feels... icky hahaha.
Would love any insight here before I explode :)
Congrats on the solid launch with Hover! It's great to see your hard work paying off. Sales tax, VAT, and GST can indeed be a bit of a maze, especially when you're just starting out. Don't explode, you're not alone! There are solutions out there to simplify this process, and we're here to help.
Navigating the complexities of when and where to pay sales taxes for SaaS companies can be overwhelming. It varies by country, state, and even the volume of your sales. Consider a billing solution like PayPro Global. We act as a Merchant of Record, handling all those complex tax compliance issues for you, not just in the US and EU but in many countries worldwide. This way, you can focus on what you do best – creating amazing content and products.