Solidgate — a payment processing platform that offers orchestration and acquiring capabilities —announced the launch of its Tax Compliance Platform, a solution designed to simplify VAT and sales tax management for digital businesses.
Offering an alternative to outdated tax management tools, this new platform eliminates many of the inefficiencies of tax compliance, “saving businesses time and resources to refocus on scaling operations.”
With each jurisdiction requiring different indirect taxation rules, multinational firms face navigating a “complex” tax landscape.
The US reportedly offers more than 13,000 sales tax jurisdictions, with rates differing depending on where the “sale is made, the merchant’s location, and the product being sold.”
Although tech is enabling modern businesses to grow, tax complexity continues to hold many back from “pursuing international expansion.”
According to a Deloitte report, complex tax reporting and data collection requirements pose the “greatest challenge” for finance executives.
Previously, a lack of alternatives forced companies to use archaic tax platforms with outdated user interfaces and “unclear” user experience that require lengthy fixed-fee contracts, as well as “long and complicated onboarding and integration processes.”
However, Solidgate’s Tax Compliance Platform is describe as a “self-service solution” that automates tax calculation, collection, and reporting processes.
This ensures accuracy for businesses handling various tax profiles and pricing structures.
By working with acquirers, payment processors, PSPs, and payment methods within its orchestration engine, Solidgate allows you to “avoid payment vendor lockup and directly import sales from your payment provider of choice.”
Advanced connectors to the most popular CRMs, ERPs, and accounting software tools are included.
Key features of Solidgate’s Tax Compliant Platform include:
- Synchronized payment management: Automatically synchronizes data from hundreds of payment processors, including Worldpay, Adyen, Checkout, Nuvei, and Stripe.
- Integration: Pairs seamlessly with leading CRM and ERP platforms and accounting software through no-code or API integration, reducing set-up time and configuration complexity for businesses selling digital goods and services.
- Automated tax calculations: Automatically calculates applicable taxes based on predefined parameters, such as customer location and transaction type, ensuring accuracy and compliance.
- Customizable rules and rates: Set regional-specific tax rates and product-related rules, finetuning calculations and reports according to your business’s needs.
- Multi-region compliance: Enhances the checkout experience with clear and transparent tax calculations, allowing businesses to handle tax-included or tax-excluded pricing and meet regulations across jurisdictions, including the US, European Union, UK, and more.
- Real-time reporting: Generates comprehensive tax reports in real-time, ensuring accuracy while simplifying tax filing and reconciliation processes.
Yuri Alekseev, CEO of Solidgate said that indirect tax management is a pain point for every company that “operates across borders, often slowing them down—if not stopping them entirely—from exploring new markets.”
Alekseev also mentioned that their goal is to “remove the complexity of tax compliance, allowing companies to focus on growing their business.”
As noted in the update, Solidgate is a payment processing platform that offers a combination of payment orchestration and acquiring capabilities, which aim to drive improvements in “transaction success rates, fraud prevention, and empowering businesses to scale across borders.”
Used by brands like BetterMe, Headway, Welltech, Dmarket, and many other digital businesses, Solidgate processes more than $5 billion in transactions using 150 currencies across 150+ countries in 2024.
Utilizing Solidgate, businesses are reportedly able to grow revenue by up to 15% while increasing payment acceptance, scalability potential, “reducing churn, and minimizing chargebacks.”
