> For the complete documentation index, see [llms.txt](https://cranford-tech.gitbook.io/stripe-connect-marketplace/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cranford-tech.gitbook.io/stripe-connect-marketplace/implementing-key-features/integrating-stripe-tax.md).

# Integrating Stripe Tax

{% hint style="info" %}
Nothing in this documentation should be taken as tax advice. Cranford Tech is not a tax advisor and nothing we write about on the subject should be considered legal, financial or tax advice. Please carefully read the [Stripe documentation on Stripe Tax](https://docs.stripe.com/tax/connect) before using the plugin's tax functionality and always consult a tax advisor if you're unsure on a tax-related question.
{% endhint %}

### Overview

[Stripe Tax](https://stripe.com/tax) is a **paid product** developed by Stripe that lets you calculate, collect, and report tax on global payments. 

{% hint style="info" %}
Please note that Stripe charges an additional 0.5% of the total payment value if you process a payment via a Checkout Session that includes Stripe Tax. Please see this article for [full details](https://support.stripe.com/questions/understanding-stripe-tax-pricing). 
{% endhint %}

When used with the Stripe Connect - Marketplace plugin, your customers will be presented with a separate line item on the Checkout page that shows the tax component of the overall cost:

<figure><img src="/files/sFuM0WEReAaKlxaEwJQv" alt=""><figcaption></figcaption></figure>

### Stripe Tax and Stripe Connect - types of integrations

Stripe Tax is designed to support two different use cases when implemented with Stripe Connect:

1. Tax for software platforms&#x20;
   * EG a SaaS platform like Shopify that enables other businesses to build stores and sell to customers
   * The **connected account (i.e. the seller)** is responsible for collecting and remitting taxes
2. Tax for marketplaces
   * EG a marketplace like Etsy that connects buyers and sellers
   * The **platform account** is responsible for collecting and remitting taxes

You can read more about these two use cases in [this Stripe doc](https://docs.stripe.com/tax/connect).&#x20;

**The Stripe Connect - Marketplace plugin currently only supports option #2  - tax for marketplaces - where the platform account is responsible for collecting and remitting taxes.**

Plugin users currently have the ability to add Stripe Tax when creating Checkout Sessions using the following actions:

* Create Checkout Session
* Create Checkout Session (Multiple Items)

The plugin does not currently support using Stripe with the 'Create Checkout Session (Subscription)' action.