Stripe Tax

How to automatically calculate and collect VAT, sales tax, and GST using Stripe Tax

Stripe Tax automatically calculates and collects VAT, sales tax and GST based on your customer’s location.

With Stripe Tax you can:

  • Automatically calculate and collect tax
  • Use Stripe tax registrations
  • Override tax behavior per checkout page and event
  • Override product tax codes

Learn more about Stripe Tax.

How do I set up Stripe Tax?

Stripe Tax is configured in both Checkout Page and Stripe.

1. Enable Stripe Tax in Checkout Page

  1. Go to Store settings
  2. Click Tax
  3. Enable Stripe Tax

You can then enable Stripe Tax on individual checkout pages and events.

2. Enable Stripe Tax in Stripe

Enable Stripe Tax in your Stripe Dashboard.

Learn more about enabling Stripe Tax in Stripe.

3. Configure your Stripe tax settings

In Stripe you should configure:

  • Your default tax behavior
  • Whether tax is inclusive or exclusive
  • Your default product tax category
  • Product tax codes if needed

Learn more about Stripe tax settings.

4. Add your tax registrations

Add your tax registrations in Stripe.

Tax registrations are locations where you’re registered to collect and remit tax.

Stripe Tax can also monitor when you may have exceeded tax thresholds in countries where you’re not currently registered.

Learn more about Stripe tax registrations.

5. Capture customer address information

The Address block included on checkout pages and events helps collect the customer information required for Stripe Tax calculations.

We recommend keeping the Address block enabled when using Stripe Tax.

Stripe Tax may require different customer address information depending on the country.

For example:

  • United States: Country, address line one, postal code
  • Canada: Country, postal code
  • EU: Country, postal code
  • United Kingdom: Country
  • Most other countries: Country

For the most accurate tax calculations, we recommend collecting a full customer address.

6. Add a Tax ID field for business customers

If you’re selling to businesses, you may also want to collect Tax IDs such as VAT numbers.

You can do this by adding a Tax ID field to your checkout page or event.

Tax IDs are validated based on their format, but you are responsible for validating that the Tax ID belongs to the customer.

7. Tax is automatically calculated during checkout

Tax is automatically recalculated as customers complete the checkout form based on:

  • Checkout price
  • Customer location
  • Customer Tax ID

Stripe charges the taxable amount on payments, displays tax on invoices and provides exports of tax transactions.

Enable Stripe Tax on a checkout page or event

To enable Stripe Tax on a checkout page or event:

  1. Open the checkout page or event
  2. Click Checkout
  3. Click Tax
  4. Select Stripe Tax

You can use Stripe Tax as your store default tax behavior or enable it only on specific checkout pages and events.

Override Stripe Tax behavior

You can override Stripe Tax settings on individual checkout pages and events.

Available tax behavior options:

  • Use Stripe account setting
  • Automatic
  • Inclusive
  • Exclusive

Override product tax codes

You can also override the Stripe product tax code for individual checkout pages and events.

If no override is selected, the Stripe account default tax code will be used.

Tax reports

Stripe Tax provides reports of completed transactions, including the tax amount collected and the tax rate applied.

To access your tax reports:

  1. Open Stripe Dashboard
  2. Go to Registrations

Learn more about Stripe Tax reporting and filing.

How do I manage customer invoices?

Our Stripe integration also allows you to manage the invoices and credit notes sent to your customers.

Learn more about Stripe invoices.

Stripe Tax pricing

Stripe Tax is priced separately by Stripe.

Learn more about Stripe Tax pricing.

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