3 ms·
Could anyone who's running a SaaS company in the US discuss what they use for sales tax compliance, ideally something that'll work with Stripe? The Supreme Cou
by Meekro 6y ago
Could anyone who's running a SaaS company in the US discuss what they use for sales tax compliance, ideally something that'll work with Stripe?
The Supreme Court's Wayfair ruling has recently forced US companies to start collecting sales tax in states where they have no presence, and for some states it's crazy complicated to figure out exactly how much tax you're supposed to charge each particular customer.
Before the Wayfair ruling, a Texas company could just say "IP Geolocation- customer in Texas? Y/N." Collect sales tax if Y. Remit taxes, keep records, and you're good on compliance. The rate would be based on your company's Texas address, so you'd charge the same sales tax rate to every Texas customer. If you were a California company, you'd charge no sales tax to anyone.
But now you're collecting for a variety of states that you have no presence in, and some will be crazy complicated. For example, Louisiana says out-of-state sellers have to identify the exact address for every buyer and match it to a huge database of tax districts to figure out which rate to charge that customer. It's crazy! A non-US SaaS company selling into the US would have a huge competitive advantage from not having to figure out this mess.
Anyway, I'd love to hear from you SaaS guys about your compliance strategies!