U.S.-based fintech Stripe announced on Tuesday it has entered into an agreement to acquire TaxJar, a provider of sales tax software for internet businesses. According to Stripe, the acquisition will help internet businesses with tax compliance.
As the latest addition to Stripe’s revenue platform, TaxJar will reportedly 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
Dhivya Suryadevara, Stripe’s CFO, spoke about the acquisition by stating:
“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.”
Mark Faggiano, CEO of TaxJar, further commented:
“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.”
Stripe added that the acquisition is subject to standard closing conditions, including regulatory approvals.
Founded in 2010, Stripe is a technology company that builds economic infrastructure for the internet. Businesses of every size, from new startups to public companies like Salesforce and Facebook, use the company’s software to accept online payments and run technically sophisticated financial operations in more than 100 countries.