Payments giant Stripe has entered into an agreement to purchase sales tax software enterprise TaxJar to improve tax compliance rates for internet firms.
Founded in 2013, TaxJar seeks to help ecommerce sellers manage their sales tax more efficiently through automation. The firm claims over 20,000 companies rely on TaxJar to stay compliant.
While the acquisition is still subject to standard closing conditions – including regulatory approvals – the purchase will supposedly help companies automate a number of business tasks.
According to Stripe, these automation-linked benefits from the acquisition include providing accurate sales tax rates at checkout tied to the exact customer street address. Another includes automatically submitting tax returns to local jurisdictions and remitting the sales tax collected.
The TaxJar platform will also produce local jurisdiction reports for Stripe customers to show sales and sales tax collected for each state and each county. The platform will additionally evaluate a company’s products and suggest the right product tax code.
Stripe CFO Dhivya Suryadevara said, “There’s a reason TaxJar has been a top choice for businesses: their software tools make it incredibly easy to handle sales tax. “With TaxJar, we will help millions of internet businesses running on Stripe with their sales tax and make it easier for them to sell internationally. And as a CFO, I’m delighted to welcome so many new colleagues who care deeply about taxes!”
TaxJar CEO Mark Faggiano said, “Like everyone at Stripe, we think every day about how we can help startups and multinational companies alike remove barriers to growing their business. What that means is making the complicated work of sales tax compliance as straightforward as possible. We know that to grow the GDP of the internet, compliance is critical. We couldn’t be more excited to join Stripe and help power millions of businesses around the world.”
Copyright © 2021 RegTech Analyst
Copyright © 2018 RegTech Analyst
