Stripe acquires TaxJar to help online businesses with tax compliance
Payments platform looks to ramp up growth with further expansion
When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.
Stripe has acquired TaxJar in a purchase aimed at boosting the power of its growingpayments platform.
TaxJar is a provider of cloud-basedtax services, which includes tools for calculating, reporting and filingsales taxeswith Stripe keen to exploit the company’s ability to handle different tax arrangements across geographical boundaries.
Although no price has been made public, TaxJar was valued at $179 million when going through a fund-raising round in 2019.Stripehas also been expanding rapidly, and the privately-held payments platform is now valued at $95 billion.
Following the acquisition, TaxJar’s 200 employees will join the Stripepayroll, with the company’s technology likely to be integrated into Stripe revenue platform alongside Stripe Billing and Radar. The former features a suite of subscription-based payment tools, while the latter providesfraud preventiontechnology.
Sales tax
However, businesses will still be able to use TaxJar as is, although it’s likely that Stripe will combine its suite of tools into other AI-based products moving forwards.
Stripe has previously looked to boost its tax-focused product portfolio with the purchase ofPayableback in 2017, using its specialism in helping with 1099 reporting for customers who pay contractors.
The company has also collaborated withIntuitto assist on-demand workers better manage their finances.
Are you a pro? Subscribe to our newsletter
Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!
However, the acquisition of TaxJar should see Stripe gain an advantage in the sales tax and remittance areas of its business, both of which are said to be the most requested features required by existing users.
“There’s a reason TaxJar has been a top choice for businesses: their software tools make it incredibly easy to handle sales tax,” said Dhivya Suryadevara, Stripe CFO. “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!”
Rob Clymo has been a tech journalist for more years than he can actually remember, having started out in the wacky world of print magazines before discovering the power of the internet. Since he’s been all-digital he has run the Innovation channel during a few years at Microsoft as well as turning out regular news, reviews, features and other content for the likes of TechRadar, TechRadar Pro, Tom’s Guide, Fit&Well, Gizmodo, Shortlist, Automotive Interiors World, Automotive Testing Technology International, Future of Transportation and Electric & Hybrid Vehicle Technology International. In the rare moments he’s not working he’s usually out and about on one of numerous e-bikes in his collection.
iStorage Group acquires Kanguru Solutions as it looks to expand security offering
Phishing attacks surge in 2024 as cybercriminals adopt AI tools and multi-channel tactics
Arcane season 2 finally gave us the huge Caitlyn and Vi moment we’ve been waiting for – and its creators say ‘we couldn’t have done it in season one’
