Stripe to acquire TaxJar to help online merchants with sales taxes
Stripe announced on Tuesday that it is acquiring TaxJar, a provider of sales tax software for internet businesses. Terms of the deal were not disclosed.
Launched in 2013, TaxJar now has more than 23,000 customers, including large companies like Microsoft and Coca-Cola. Almost all states in the United States now collect sales taxes from online merchants. Adding local online sales taxes to the mix, there are over 11,000 different sales tax jurisdictions in the United States alone, Stripe said.
“For Internet businesses, accurately tracking, calculating, reporting and filing taxes is a significant and growing burden,” Stripe noted in its release. “Indeed, one of the biggest requests from Stripe users over the past five years has been for assistance navigating sales tax.”
Stripe has announced plans to make TaxJar a mainstay of its “revenue platform,” which also includes Stripe Billing for subscription management, as well as Stripe Radar for fraud and risk management. Adding TaxJar to the platform will allow custom Stripe customers to automate tasks such as providing accurate sales tax rates at checkout (tied to the customer’s exact mailing address) and reporting. compliance for state and local jurisdictions.
At this time, existing TaxJar users will not see any changes to the company’s products. As part of the acquisition, all 200 TaxJar employees will join Stripe.
Following the acquisition, Stripe said it will continue to develop the tools it offers to help internet businesses with sales tax. Specifically, the company is planning a suite of tax tools that other platforms can offer their own clients.