Stripe, a global technology company that builds economic infrastructure for the internet, has entered into an agreement to acquire TaxJar, a provider of sales tax software for internet businesses.
According to Stripe, local sales taxes applicable to online commerce have increased rapidly in recent years, with more than 11,000 different sales tax jurisdictions in the United States alone.
For internet businesses, it says that accurately tracking, calculating, reporting, and filing taxes is a “large and growing burden”. It noted that one of the top requests from Stripe’s users over the past five years has been for assistance in navigating sales tax.
Stripe’s revenue platform helps internet businesses make more money while “relieving the burden of tedious, administrative tasks”. Its Adaptive Acceptance feature uses machine learning to retry network declines in real time using optimized routing and ISO 8583 messages, helping improve authorization rates and recover revenue that would otherwise be lost.
Stripe Billing also provides more than 100,000 businesses with micro-optimizations that increase revenue and cash flow. By intelligently suggesting the right payment methods, Stripe Billing’s hosted invoices get paid three times faster than traditional invoices.
As the latest addition to Stripe’s revenue platform, TaxJar will help businesses automate tasks such as:
- Providing accurate sales tax rates at checkout, tied to the exact street address of the customer.
- Automatically submitting tax returns to local jurisdictions and remitting the sales tax collected.
- Producing local jurisdiction reports to show sales and sales tax collected—not only for each state, but for relevant counties, cities, and other special jurisdictions.
- Evaluating a company’s products and intelligently suggesting the right product tax code.
Since its launch in 2013, demand for TaxJar’s sales tax offerings has grown rapidly among internet businesses of all sizes.
Dhivya Suryadevara, Stripe CFO, 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.”
Mark Faggiano, CEO of TaxJar, 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.
“And 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.”