To be tax compliant, you need to:

*   Understand which locations require you to collect tax.
*   Register for tax in those locations.
*   Calculate and collect tax.
*   Report, file, and remit the tax you collected.

Indirect taxes with Stripe Tax

Each country handles tax on sold products and services differently, often calling it by a different name. In the US, businesses deal with sales tax. Throughout Europe, it’s called value-added tax (VAT). Canada and most countries in the Asia Pacific region refer to it as goods and services tax (GST).

Taxability and tax rates vary by location and category of products you’re selling. For example, children’s footwear is zero rated in Ireland, but adult footwear isn’t. Digital services are usually taxed at the standard rate in most EU countries. However, e-books are subject to the reduced rate.

Stripe Tax uses your business address, tax registrations, product tax codes, customers’ locations, and customer status to determine the correct tax rates for products you sell, in all supported locations. We have tax researchers who monitor tax laws and tax authority publications for changes, and make any effective updates directly to Stripe Tax as needed. Read more about tax codes and how we calculate for different jurisdictions.

Monitor your obligations and register

You need to identify the locations where you have sales