Integrating Stripe Tax

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 before using the plugin's tax functionality and always consult a tax advisor if you're unsure on a tax-related question.

Overview

Stripe Tax is a paid product developed by Stripe that lets you calculate, collect, and report tax on global payments.

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.

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:

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

   • 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.

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.