Sales Tax Calculation for your SaaS on Stripe?
How do y'all calculate sales tax on your SaaS service, particularly when using Stripe? Is it based on the state your company operates in?
It looks like some states do apply sales tax, but it seems a bit crazy to then register and remit to each state.
What do y'all do?
Hey there! I'm Kelly, a Product Manager at Stripe working on solving this exact problem for developers and small businesses. While we've had Tax Rates [0] for sometime, we've heard from users that they want Stripe to be more directive/handle more of the compliance, so that's what we're planning on doing! To your point, you are spot on in that you would have to monitor and track your obligations within each US state, Canadian province, or any country you sell into, to determine if you cross a threshold and then register, collect, and remit tax for each jurisdiction.
I'm happy to chat a bit more about what we're working on if you (or anyone else!) is interested -- kmoriarty@stripe.com. Even if our solution isn't quite a fit for you and doesn't solve all your problems, happy to share some of my own learnings from building our product in case helpful.
[0] https://stripe.com/docs/billing/taxes/tax-rates
Hi @kellykmo,
I found this comment now, 8 months later. Anything new in Stripe?
Thanks!
Yes, but it's not yet public :) Send me an email, would love to chat and show you what we've been working on this past year.
I also want to know this. Is there a way I can follow a post on Indie Hackers? I've setup via Stripe Atlas in Delaware. I haven't got my tax ID yet so no payments coming my way just yet... but already a little worried about the VAT/general tax situation.
@csallen what do you think about putting up some kind of FAQ / Wiki perma-sidebar on the site that answers questions like this?
It seems like the state of the art is constantly being updated, and pretty much every indiehacker is going to have questions like this.
Taxes are such a complex issue that cannot be handled with a one-size-fits-all approach, so you’ll need to research what tax regulations apply to you and keep up with any compliance changes. The legalities can differ across countries, states, and even metropolitan areas.
In the United States, you’re responsible for taxes in the following two instances:
You can track all these always-changing regulations by yourself, or let them be handled by PayPro Global and forget about this nightmare.