Stripe reported about tax tool, the use of which will allow the clients of the company’s platform to increase the volume of sales worldwide.
Michael Carney, head of the development of the tool known as Stripe Tax, in a press release published last Wednesday, August 2, said that the creation of a corporate solution that assists with sales tax and VAT was one of the most frequently requested functions from consumers. He also described the new tool as a logical continuation of payment transaction processing services. According to him, Stripe Tax will allow owners of platforms that interact with this company to offer a tax assistance function in all aspects of the life cycle of financial operations.
The firm also reported that the new tool greatly simplifies the process of cross-border sales. The reduction in the level of complexity of the procedure occurred as a result of a solution without coding for complex tax requirements regulating the sphere of international trade operations.
The company’s press release indicates that in this case, the firm is solving a large-scale task since the tax landscape is not a stable system and is subject to various adjustments on a virtually regular basis. For example, last year in the United States alone, more than 600 changes were made to the set of rules and sales tax rates. In the European Union, even more, adjustments have been made to the regulatory framework governing the application of VAT.
The company, referring to the data of its report, notes that 18% of firms identify the complexity of taxation as the reason for refusing to expand the scale of activities at the global level.
Stripe Tax automatically performs the process of calculating and collecting the correct sales tax, VAT, and GST. This tool is available to customers in more than 40 countries and all US states.
Stripe Tax significantly reduces the application time due to automated reporting on a specific location for each US state. The tool also provides summary reports that consumers can submit in all countries where their business is registered to collect taxes.
Guillaume Tournand, Vice President for Development and Digital Commerce of Worldline, says that the most significant offer in terms of practical value and prospects of benefit within the payment ecosystem is to provide sellers with conditions for integration into complex international economies with growth potential based on the method of accurate and convenient action. This is a very difficult task since in this case, it is necessary to take into account the problematic nature of international payments and reconciliation friction, which are aspects caused by current and historically established operational problems.
As we have reported earlier, Stripe Partners WhatsApp for In-Chat Payments in Singapore.