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	by jrv 2033 days ago
	How do you handle global sales tax / VAT remittance, especially stuff like B2C VAT in the EU, etc.? Stripe doesn't do this unfortunately, but solutions like Paddle and FastSpring do, by acting as a reseller and Merchant of Record.

2 comments

vertis 2033 days ago

Not sure about OP, but if you're looking to run a EU SaaS company for B2C or B2B, then I can highly recommend Xolo(https://xolo.io). They handle all the heavy lifting from a tax perspective.

They help you get your company set up (with e-residence) and then hook into either Transferwise or LHV for banking (and stripe, etc flows into that).

Very friendly as well, I'm in Estonia currently and I dropped into their office yesterday to say hi.

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jrv 2033 days ago

Thanks! I already have my own Germany company, but it may be interesting to others.

For now I'm just using resellers like Copecart/Digistore24/Paddle/FastSpring to handle all the global B2C VAT stuff for me.

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jakelazaroff 2033 days ago

I don't yet, but as the company approaches its first tax season that will move toward the top of my to-do list!

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jrv 2033 days ago

One word of caution: at least if you're based in the EU, this is basically impossible to do legally correctly by yourself globally unless you spend many thousands of dollars VAT-registering yourself in all kinds of places around the world and knowing global tax laws to make sure you get everything right, since electronically delivered goods (like your SaaS) are taxed in the country of the recipient of the services. Within the EU it's at least possible to use a simplified MOSS (mini one stop shop) process, but that also has its drawbacks.

This is the best summary I found of the situation so far: https://quaderno.io/resources/eu-vat-guide/

Basically I arrived at the conclusion that it's impossible for me as a small business to do global B2C VAT (not just calculation, but also actual remittance) myself, and thus am using resellers (Copecart, Digistore24, Paddle, FastSpring) that do all this for you by being a complete middleman in the transaction. Of course they then also take a larger cut than something more light-weight like Stripe. I wish Stripe also supported global VAT / sales tax remittance.

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