Use Stripe Tax with Connect
Understand how Stripe Tax can help your platform and your connected accounts comply with tax obligations.
Stripe Tax supports Connect by helping you calculate and collect taxes. It provides transactional reports to help with tax reporting and filing for your platform or your connected accounts.
The first step for using Stripe Tax with Connect requires you to determine which entity has the obligation to collect and report taxes. The entity that’s liable for tax might be you or your connected account, depending on your business model, regulations (for example, marketplace laws in the US and EU), or the transaction details, such as the order amount or the type of goods being sold.
Use cases
Stripe Tax is designed to support different multi-party use cases:
| Use case | Use when | Examples |
|---|---|---|
| Tax for software platforms |
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| Tax for marketplaces |
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Stripe Connect’s distinction between SaaS platforms and marketplaces doesn’t strictly correspond to the tax definition of marketplaces that are responsible for tax collection. Consult with a tax advisor who understands your business model to determine the tax obligations for both your platform and your connected accounts.