Can I deduct Stripe and PayPal fees as business expenses?

Generally, yes: Stripe and PayPal fees are usually deductible as ordinary and necessary business expenses when they’re incurred in the course of running your business.

A few important cautions:

• Don’t assume they’re fully deductible in every situation. The exact tax treatment can depend on your business structure and local tax rules.
• Usually, you report your business income at gross amounts and then deduct payment-processing fees as a separate business expense, so your taxable income reflects the net effect.
• Where to record them depends on your business type. Sole proprietors often deduct them as a business expense on Schedule C, while partnerships and corporations generally deduct them on the appropriate business return.

Practical tip: keep your monthly Stripe/PayPal statements and bank records so you can reconcile the fees with your sales.

Because tax treatment can vary by country and by entity type, it’s smart to confirm the exact line item with a CPA or tax professional for your return.