""Marketplaces are liable for tax on their entire GMV (gross merchandise value) not just their take rate, so every new country meant a maze of registrations, filings, deadlines, and risk," Rudder told TechCrunch. "It became a constant distraction. Instead of building the business, I was spending time deciphering international compliance rules I never wanted to become an expert in.""
""The world was going global, but compliance infrastructure hadn't kept up," Rudder said."
""We help companies collect tax on customer transactions," he continued, explaining that companies have to collect tax on purchases and remit it to authorities each month or quarter."
"Sphere helps "automate registration, calculation, filing, and remittance obligations for companies," he said."
An educational marketplace, ScholarSite, repeatedly encountered tax compliance burdens because marketplaces are liable for tax on their entire GMV rather than only their take rate, making each new country require registrations, filings, deadlines, and risk. The team pivoted the product into Sphere, launched in 2023 to automate cross-border tax compliance for companies scaling globally. Sphere automates registration, tax calculation, filing, and remittance, integrates with billing platforms like Stripe and Campfire, sets up in under 24 hours, uses AI to assess taxability, spent two years in stealth, counts clients such as Lovable, Replit, and ElevenLabs, and raised a $21M Series A.
Read at TechCrunch
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