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6 Comments

Subscription business - TAX handling

I want to start working on my project where I want to implement subscription payments.

However, my attention is now focused on taxation, which is a bit unclear for me.

I would like to use one of the platforms to handle the subscription:

  • MemberStack
  • MemberSpace
  • Outseta
  • Gumroad Subscription

I want a very simple solution for taxes and their handling. As far as I know, Gumroad Subscription automatically adds tax (depending on buyer's country) and then transfers it. This makes accounting much simpler.

MemberStack, MemberSpace and Outseta use Stripe for payments. Does any of these platforms also "automate" tax collection and settlement?

Thanks!

  1. 1

    Hey there! Stripe natively handles automatic tax calculations now. Here are some video tutorials that explain how to set up your Stripe account to handle taxes properly. Have you checked out Billflow and Stripe as an option?

  2. 1

    Not sure about those platforms, but a couple services that do the tax handling I think are Paddle and Chargebee. I think the term is Vendor of Record (that is who is responsible for dealing with the taxes). When you use Stripe, you are the VOR, these others assume that. So on the credit card statement instead of it being "My Great App" it is "Gumbroad: My Great app". etc..

    Stripe did just acquire a company that does this, so I imagine they will offer this as a service sometime in the future too.

  3. 1

    As Dave said, Stripe Checkout also supports dynamic tax collection based on the billing address of the customer. We support this at PriceWell. I'm happy to chat if you want more info.

  4. 1

    I don’t know if it is included on their subscription plans.

  5. 1

    MemberSpace doesn’t work well for dynamic tax rates if you need to charge customers from different areas. With MemberStack you need to include the tax in your subscription plan. Stripe Checkout makes it frictionless though. Did you check it?

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