Sales tax: setting up Stripe Tax

Your storefront can charge sales tax for you. Stripe Tax calculates it on the payment page from your registrations and the customer's location, adds it on top of your prices, and pays it out to you with the order. You file and remit it as you do for counter sales, and Stripe's tax reports for your account are there to help.

Setting it up

The Sales tax card appears on the admin page once Stripe is connected. Three things are needed:

1. Head office. Your store's address. In-store pickup orders are taxed here, as a sale at your counter would be.
2. Product type. Pick the tax category that fits what you sell. Prints, cards, books, and framed work are ordinary goods in most places.
3. Registrations. Add each state where you are registered to collect sales tax. Stripe only charges tax where you have a registration.

When the card reads Ready, click Collect sales tax at checkout.

Until all three steps are done the card says Setup incomplete and lists what is missing, and orders go through untaxed.

Where tax is calculated

What it costs

Stripe charges a small fee for the tax calculation on each taxed order. It comes out of the tax-collecting account, which is yours.

Switching it off

You can turn collection off at any time from the same card. Orders placed while it is off are untaxed.

Set it up per product

Like Stripe itself, sales tax is set up on each product's admin page separately.

Not sure whether you need to collect?

Ask your accountant. We set up the mechanism; we cannot advise on the obligation.

Related: Connecting Stripe and getting paid.

Questions? help@graphx.com