@EddyVinck A very similar question was recently posted on Reddit and I am going to copy/paste my comment below. But please feel free to ask any questions. I am a CFO for an IT company and I worked with Stripe.
My comment:
Stripe can not handle tax. Stripe can barely compute tax. From their website:
Stripe Tax lets you calculate, collect, and report tax on global payments with a single integration. Know where to register, automatically collect the right amount of tax, and access the reports you need to file returns.
Believe me, I have been working as a CFO for several companies and a system that tells you where to register and give you the raw data to file YOURSELF your reports, is not what I call a system that handles my taxes!
If you want to seriously work globally, go with a MoR and forget about Stripe. Now Lemon Squeezy or Paddle, that's the big question. It seems that Lemon Squeezy is way more expensive for companies outside the US and working globally.
And your accountant is most certainly right but it is impossible to confirm without more information.
At best, if you are using Stripe Tax, Stripe will add taxes where YOU tell them to add taxes. So, if you haven't told Stripe to compute VAT on EU transactions, Stripe Tax will just show 0%.
When it comes to Sales Tax, Stripe can help you track the economic nexus per state, so you will know when you need to start adding sales tax to your invoices.
Anyway, if you are selling globally, Stripe is absolutely not the right tool, unless you have an army of tax accountants working for you. A Merchant of Record (MoR) costs more, but it saves you a ton of headaches in the long run!
@EddyVinck A very similar question was recently posted on Reddit and I am going to copy/paste my comment below. But please feel free to ask any questions. I am a CFO for an IT company and I worked with Stripe.
My comment:
Stripe can not handle tax. Stripe can barely compute tax. From their website:
Stripe Tax lets you calculate, collect, and report tax on global payments with a single integration. Know where to register, automatically collect the right amount of tax, and access the reports you need to file returns.
Believe me, I have been working as a CFO for several companies and a system that tells you where to register and give you the raw data to file YOURSELF your reports, is not what I call a system that handles my taxes!
If you want to seriously work globally, go with a MoR and forget about Stripe. Now Lemon Squeezy or Paddle, that's the big question. It seems that Lemon Squeezy is way more expensive for companies outside the US and working globally.
And your accountant is most certainly right but it is impossible to confirm without more information.
At best, if you are using Stripe Tax, Stripe will add taxes where YOU tell them to add taxes. So, if you haven't told Stripe to compute VAT on EU transactions, Stripe Tax will just show 0%.
When it comes to Sales Tax, Stripe can help you track the economic nexus per state, so you will know when you need to start adding sales tax to your invoices.
Anyway, if you are selling globally, Stripe is absolutely not the right tool, unless you have an army of tax accountants working for you. A Merchant of Record (MoR) costs more, but it saves you a ton of headaches in the long run!