Legal, Tax, and Accounting November 18, 2020

I need advice on SAAS subscriptions billing and eu taxation

Natalio Krasnogor @nkrasnogor

Colleagues,
I am looking for some advice on how best to handle saas subscription billing and eu taxes.
My stack is, essentially, ruby on rails, javascript, postgresql running on heroku, aws s3, mailgun.
My main constraint is time, ie, I need the simplest solution that could do both billing and taxes, even if it is a bit more expensive.

Any help would be immensely appreciated

  1. 2

    Gumroad and Paddle both act as your merchant of record, and in exchange for slightly higher fees, collect and remit Sales Tax & VAT on your behalf.

    1. 1

      Many thanks for the pointers

  2. 1

    I saw someone posted about Stripe w/ Tax Rates below which does work indeed, but wanted to jump in and mention Stripe is working on some new features to automate tax calculation and reporting that would integrate with our Billing solution as well. Happy to share more (I'm the Product Manager), and see if it would meet you needs! DM or email -- [email protected]

  3. 1

    I've just answered a similar question in a stripe thread. Yeah, stripe can handle this: https://stripe.com/docs/billing/invoices/sending
    You can set the tax rate in the api call.

    This post should be interesting for you, different solutions are compared: https://medium.com/slight-pause/how-to-setup-saas-subscriptions-correctly-to-charge-vat-in-europe-d75d857b5d01

    Finally, if you need to do it yourself, one way to calculate the VAT rate yourself would be: vatapi.com

    1. 1

      Thank you for the links

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