Use Stripe Tax with Connect

Stripe Tax supports Connect by helping you calculate and collect taxes. It provides transactional reports to help with tax reporting and filing for your platform or your connected accounts.

The first step for using Stripe Tax with Connect requires you to determine which entity has the obligation to collect and report taxes. The entity that’s liable for tax might be your connected account or the platform, depending on your business model (for example, marketplaces versus SaaS platforms), regulations (for example, marketplace facilitator laws) or the transaction details, such as the order amount or the type of goods being sold.

Consult with a tax advisor who understands your business model to determine the tax obligations for both your platform and your connected accounts.

Tax for software platforms

SaaS platforms enable other businesses with software services to reach their customers. In these configurations, the connected accounts typically assume responsibility for collecting and remitting taxes. Here’s an overview of charge types and integrations currently supported by Stripe Tax:

Tax for marketplaces

Marketplaces connect buyers and sellers on a single platform, and are websites or apps where products are listed by multiple third-party vendors. In some jurisdictions, marketplaces may be responsible for tax collection on transactions that they facilitate. The overview below explains which charges and integrations are currently supported by Stripe Tax: