Calculate tax
Learn how to calculate tax with Stripe Tax.
The most common forms of indirect taxes for your business are sales tax, VAT, and GST. These taxes apply on the sale of physical goods, digital goods, and services.
Stripe calculates tax on a transaction taking into account some or all of the following factors:
- the location of the seller
- the location of the customer
- the type of the product sold
- the status of the customer (for example, whether they’re a VAT-registered business, private person or an exempt organization)
Stripe uses a single address as the customer’s location (destination) when calculating taxes.
Which address is used
In certain scenarios, it is important to identify the origin of a transaction. Stripe generally uses the address where your business is located as the origin of a transaction. This address is defined as your origin address in the Dashboard or as head_office
if using the tax settings object.