finance news

Stripe launches Stripe Tax service to aid businesses with sales taxes

Stripe launches Stripe Tax service to aid businesses with sales taxes
Stripe launches Stripe Tax service to aid businesses with sales taxes

Stripe, a financial services company, has recently unveiled a new service, Stripe Tax, to simplify the process of calculating and collecting sales taxes by businesses. This service launch marks the latest expansion of the company’s service offerings across the finance space.

Notably, the new service will automate the collection and calculation of sales, value-added & goods and services taxes for all the transactions made via Stripe’s platform. For the record, a Dutch startup, Routetitan, and a newspaper publisher, News UK, are among the early adopters of the service.

As per the statement made by Stripe, businesses can enable the Stripe Tax service by adding a line of code to their website. The company is planning to use customers’ data such as locations and services or products being sold to identify the tax still due. It also has been making money through the transaction fees paid by the merchants.

Stripe has witnessed intense competition from rival companies such as Checkout.com, Adyen, and Square over the past months. In the wake of the COVID-19 pandemic, the company has been observing a substantial boost driven by the rapid shift of businesses from offline to online channels amid strict lockdowns to limit the spread of the virus. Since the outbreak, it registered above 500,000 new clients across Europe. It has also been accelerating its expansion into other business areas beyond payments, like lending & bank accounts from partners such as Goldman Sachs and Citigroup.

In addition, Stripe recorded a considerable valuation during a funding round in March and revealed plans to adopt the fresh funds to expand its European operations. For those unversed, the company’s sales tax software was formed out of Dublin, where it employs over 80 engineers.

The recent launch of Stripe Tax happened along the heels of its acquisition of TaxJar, a sales tax software provider, with an aim to help its internet business with sales taxes.

Source credit:

https://www.cnbc.com/2021/06/10/stripe-new-software-helps-companies-calculate-sales-tax.html

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Nandita Bhardwaj

Nandita holds a management degree with specialization in marketing, and boasts of a short-term experience in the field of recruitment. Following her passion for writing however, she decided to pursue a career in the field of content development. Presently, Nandita pens down news pieces for newsorigins.com, spanning the verticals of business, finance, and technology.