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Managing sales tax when selling apps in the marketplace via stripe



Posted Jul 11, 2024

Hello,

 

Selling apps in the marketplace is definitely made easier thanks to the stripe integration.

What is the recommended approach for managing sales tax in the various jurisdictions?

 

I know that some marketplaces collect and remit on behalf of the app seller, which would be the preferred scenario.

But I believe as a seller, I would still be required to report on this to the various tax agencies in the jurisdictions my apps have been sold.

 

But the stripe checkout process is such that we (app sellers) are collecting app revenue directly, so I think it is up to me to collect and remit sales tax.

If that is correct, is there a recommended approach to automate this?

 

Any guidance on this would be greatly appreciated.


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1 comment

You're right; if you're managing sales directly, you’re responsible for VAT tax collection and remittance. Using Stripe's tax features or integrating tools like TaxJar can automate this process and simplify compliance.

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