Stripe on Thursday launched a new tax compliance tool called Stripe Tax. The product helps businesses automate the calculation and collection of sales tax, value-added tax (VAT), and goods and services tax (GST) in more than 30 countries and every US state. It also creates comprehensive reports that make it easier for businesses to file taxes.
The product launch comes on the heels of Stripe's acquisition of TaxJar, a provider of sales tax software for internet businesses.
Stripe customers have long sought more assistance with tax compliance, the company says -- and understandably so. The task has become increasingly complex. Nearly every US state now collects sales taxes from online merchants. Adding local online sales taxes into the mix, there are more than 11,000 different sales tax jurisdictions in the US alone, Stripe says.
According to a survey the company published last year, two-thirds of European businesses polled said managing tax compliance holds back their growth. A majority said they would launch more products and expand into more countries if relieved of the burden.
Customers can implement Stripe Tax with a single line of code or by updating a single setting in their Stripe Dashboard.
Stripe has said it will keep expanding the tools it offers to help internet businesses with sales tax. Specifically, the company is planning a suite of tax tools that other platforms can offer their own customers.