Notes on remitting Stripe Tax to the UK and EU
Photo by Kelly Sikkema on Unsplash
I’ve been selling access to high resolution shadow maps on shademap.app for the past few months. This is known as a digital good and is subject to tax in various jurisdictions.
I use Stripe as my payment processor which calculates and collects the appropriate tax amount during checkout based on the buyer’s location. (More info: Stripe Tax)
However, it is my own responsibility to report and surrender (remit) the collected tax money to the appropriate authorities. Here are some notes I’ve compiled on the process in the UK and EU.
Thresholds
Unfortunately, the threshold for remitting taxes in the UK and EU is $0. This means that you owe tax from your first sale.
Stripe Tax
Stripe does the tax calculation and collection for you with one caveat: it will only start doing so for a jurisdiction once you enter the appropriate tax registration number...