The company said that dealing with requirements around local sales taxes is a significant burden for businesses selling online. The U.S. alone has more than 11,000 different sales tax jurisdictions, it said.
“There’s a reason TaxJar has been a top choice for businesses: their software tools make it incredibly easy to handle sales tax,” Dhivya Suryadevara, Stripe’s CFO, said in the press release.
“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. And as a CFO, I’m delighted to welcome so many new colleagues who care deeply about taxes!”
Stripe touted the new capabilities as a welcome addition to its overall platform, which helps reduce complexity and streamline administrative tasks with features such as Stripe Billing.
TaxJar will help automate sales tax-related tasks, including providing accurate rates at checkout, automatically submitting tax returns to local jurisdictions, remitting sales tax collected, and producing local reports.
“Like everyone at Stripe, we think every day about how we can help startups and multinational companies alike remove barriers to growing their business,” Mark Faggiano, CEO of TaxJar, said.
“And what that means is making the complicated work of sales tax compliance as straightforward as possible. We know that to grow the GDP of the internet, compliance is critical. We couldn’t be more excited to join Stripe and help power millions of businesses around the world.”
TaxJar’s 200 employees will join Stripe as part of the deal, the company said.
Stripe was also among the returning investors that participated in a Series C funding round for teen banking app Step. The company announced the $100 million round this week. Stripe led Step’s Series A funding round in 2019 and participated in its Series B round last year.