{"id":775226,"date":"2026-10-06T05:56:04","date_gmt":"2026-10-06T12:56:04","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&p=775226"},"modified":"2026-10-06T05:56:04","modified_gmt":"2026-10-06T12:56:04","slug":"stripe-ai-tax-jurisdictions","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/stripe-ai-tax-jurisdictions","title":{"rendered":"The Overlooked Geography Beneath the AI Economy"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","transcript_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[],"tags":[1741,313012,180112,493605,170182],"department":[488812],"wherenext-category":[],"industry":[],"class_list":["post-775226","wherenext","type-wherenext","status-publish","format-standard","hentry","tag-ai","tag-business-growth","tag-compliance","tag-location-software","tag-risk","department-emerging-technologies"],"acf":{"short_description":"As AI companies experience explosive growth, they\u2019re discovering why a strong grasp of geography is a precondition for scaling. ","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"AI-native companies are growing faster<\/a> than business executives of a previous generation could have dreamed. One executive at a prominent AI company estimated that his company could grow by 80 times this year<\/a>. That growth doesn\u2019t exempt them from a business practice as old as time\u2014tax collection\u2014and in the AI economy, tax compliance may be more complicated than ever."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"Snapshot<\/strong>: In the AI economy, growing companies often face complex tax jurisdictions. Global payments processor Stripe has tapped location intelligence to tame that complexity.","snippet":""},{"acf_fc_layout":"content","content":"In part, that\u2019s because most of the world\u2019s countries now abide by the taxation-by-destination rule, which requires businesses to collect the taxes of the country or state of the customer\u2014not the country or state of the company.\r\n\r\nIn the US, there are over 16,000 combinations of tax rules and rates that can apply to a sale of goods or services. Tax jurisdictions do not nest neatly in cities or ZIP codes\u2014and the rates they apply are constantly changing. Other countries use entirely separate systems, like the value-added tax (VAT) in Europe or the goods and services tax (GST) in Canada, complicating any company\u2019s global expansion.\r\n\r\nWithout a systematic approach for managing tax compliance in a large number of jurisdictions, high-flying AI firms may expose themselves to legal risks or penalties for noncompliance. Or they hesitate to enter markets whose tax regimes they don\u2019t fully understand. Tax compliance starts by understanding where the transaction is taxable, which is usually where the customer is located.\r\n\r\n\u201cThat\u2019s why it\u2019s so important to know where your customers are,\u201d says Aleksandra Bal, the global indirect tax technology lead at Stripe.\r\n\r\nStripe\u2019s tax compliance product Stripe Tax<\/a> uses sophisticated geographic information system (GIS) technology<\/a> to instantly and accurately identify tax jurisdictions, saving clients significant time they might otherwise spend investigating local tax jurisdiction boundaries.\r\n