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5 reasons why SaaS businesses choose Paddle Comply over Stripe Tax

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Stripe Tax only caters for one aspect of tax compliance. It calculates sales tax rates on your transactions automatically, but businesses are still liable, and will still need to file and remit their own taxes.

With Paddle, your tax is not only calculated, filed and remitted automatically, but we are also legally liable for all sales tax and related compliance.

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SaaS is now a regulated industry. Stay compliant with Paddle.

Stripe Tax is a tax calculator only

Stripe Tax calculates rates on your transactions automatically, but you remain liable, and will still need to register, file and remit your own taxes.

Paddle Comply is a compliance and tax package

Paddle Comply โ€“ part of the Paddle Revenue Delivery Platform โ€“ is the only way for software businesses to sell globally with all your sales tax, payments, and data compliance guaranteed.

Comply is included for all Paddle sellers at no extra cost.

#1: No more sales tax liability ๐Ÿ˜‡

With Stripe, you are still legally liable, meaning any possible calculation errors could see hefty penalties.

Paddle Comply indemnifies you - and the other 2000+ software businesses we work with - from sales tax liabilities. It's our responsibility to calculate, file, and remit the ever-changing correct sales tax on everything sold through the platform.ย 

Check our Tax Agony Index โ†’ย 

#2: Ensure you are registered globally ๐ŸŒ

With Stripe Tax, you still need to register your business around the world. This means tracking your obligations per local filing thresholds, and completing the necessary paperwork - which could likely involve registering in each US state.

Paddle is registered in every jurisdiction where needed and updates sales tax rates on an ongoing basis. No more getting caught out by thresholds, rate changes, or new laws.

#3: All steps of sales tax is handled by Paddle

With Stripe Tax, you will still be in charge of filing and remitting your sales tax. This means tracking filing deadlines, remitting across different countries and regions, managing multiple transfers over time and tracking multiple payment fees.

Paddle does all of the above so you donโ€™t have to. We will collect the correct rate of tax, track the filing deadlines, prepare our records, remit, submit sales tax returns with all the other necessary documentation & payments to stay compliant.

#4: Become tax compliant globally ๐Ÿ—บ๏ธ

Stripe only calculates tax in 30+ countries, currently working in the US, EU, UK, Norway, Switzerland, Australia, and New Zealand.ย 

Paddle calculates tax automatically globally. Because Paddle acts like the reseller, we make sure you are compliant no matter where your transaction is.

Find out more about which countries Paddle charge sales tax here โ†’ย 

#5: Simplified pricing from the start

Stripe Tax costs 0.4%-0.5% for every transaction on top of the usual 2.9%, but the costs can easily build up.ย 

You will need to integrate and pay for additional tools to automatically file taxes in the US and EU plus all the costs involved in managing your compliance, including headcount.

Paddle offers all of the above within one simple tool - and one tool means just one set of costs to plan, manage and reconcile.