#1: No more sales tax liability 😇
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.
#2: Ensure you are registered globally 🌏
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 don’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 🗺️
Stripe only calculates tax in 30+ countries, currently working in the US, EU, UK, Norway, Switzerland, Australia, and New Zealand.
Paddle calculates tax automatically globally. Because Paddle acts like the reseller, we make sure you are compliant no matter where your transaction is.
#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.
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.