Notes on Remitting Stripe Tax to the UK and EU

Ted Piotrowski shares insights on remitting Stripe Tax for digital goods sold in the UK and EU. He highlights that the tax threshold is $0, meaning taxes are owed from the first sale. Stripe calculates and collects taxes based on the buyer's location, but sellers must report and remit these taxes themselves. To do this, sellers need a VAT ID for both the UK and EU. The EU has a streamlined process through the VAT OSS, allowing sellers to remit taxes to one country, with Ireland being a convenient option for English speakers. The process for obtaining a VAT ID from Ireland is quick, while the UK’s HMRC process takes about 30 days.

Once VAT IDs are obtained, they can be entered into the Stripe Tax dashboard for automatic tax collection. Sellers must file quarterly tax returns, with the EU returns submitted via the Irish ROS site. The UK has a more complex system due to the Making Tax Digital initiative, but free software like MTDSorted can assist with filing. Stripe Tax can export transaction data by country, although multiple currencies complicate the tallying process.

After filing, paying the tax is a separate step; EU payments require a Visa or Mastercard, while UK payments can be made immediately. Piotrowski expresses frustration with the reliance on paper communication from tax authorities and invites tax professionals to provide feedback on his notes.