In the United Kingdom, pet food is not subject to VAT, but it becomes so if it is products for pets; cowboy boots aren’t taxed in Texas, but hiking boots are; the rate for virtual tickets for a webinar varies significantly depending on the country of origin of the ticket holder, whether it is a live or recorded event, and the type of buyer.
These are just a few examples of how diversified and complex are, from country to country and within individual national regulations, the tax rules relating to individual goods in common use. All the more so as these are regulations that can change frequently and can vary based on minute details.The fact is that tax compliance has become increasingly complex, with both physical and digital assets being taxed differently in over 130 countries, and more than 11,000 separate tax jurisdictions in the United States alone.
Loading…
A problem that turns into additional costs and risks for companies grappling with international markets.
Based on these problems Stripe launches Stripe Tax, a new tool to help companies automatically calculate and collect any type of sales tax, from VAT to Goods & Services Tax (Gst), in over thirty countries, which currently include the European countries, Australia and the United States.
Connected directly to its payment systems infrastructure, Stripe Tax simplifies every aspect of tax management: automates the calculation and collection for transactions made on Stripe, tells companies when and where they are due, and creates detailed reports to facilitate tax reporting of income.