Use Stripe Tax with Connect
Stripe Tax supports Connect by helping you calculate and collect taxes. It provides transactional reports to help with tax reporting and filing for your platform or your connected accounts.
The first step for using Stripe Tax with Connect requires you to determine which entity has the obligation to collect and report taxes. The entity that’s liable for tax might be your connected account or the platform, depending on your business model (for example, marketplaces versus SaaS platforms), regulations (for example, marketplace facilitator laws) or the transaction details, such as the order amount or the type of goods being sold.
Consult with a tax advisor who understands your business model to determine the tax obligations for both your platform and your connected accounts.
Tax for software platforms
SaaS platforms enable other businesses with software services to reach their customers. In these configurations, the connected accounts typically assume responsibility for collecting and remitting taxes. Here’s an overview of charge types and integrations currently supported by Stripe Tax:
Charge type | Liable for tax? | Support |
---|---|---|
Direct charges | Connected Account |
|
Destination charges | Connected Account |
|
Destination charges with on_behalf_of | Connected Account |
|
Separate charges and transfers | Connected Account |
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Separate charges and transfers with on_behalf_of | Connected Account |
|
Off-Stripe payments | Connected Account |
|
Tax for marketplaces
Marketplaces connect buyers and sellers on a single platform, and are websites or apps where products are listed by multiple third-party vendors. In some jurisdictions, marketplaces may be responsible for tax collection on transactions that they facilitate. The overview below explains which charges and integrations are currently supported by Stripe Tax:
Charge type | Liable for tax? | Support |
---|---|---|
Direct charges | Platform |
|
Destination charges | Platform |
|
Destination charges with on_behalf_of | Platform |
|
Separate charges and transfers | Platform |
|
Separate charges and transfers with on_behalf_of | Platform |
|
Off-Stripe payments | Platform |
|
Request access to our Beta features
We’re expanding the set of capabilities offered to Connect platforms and have a number of capabilities in private beta, including:
- Calculating tax with
on_behalf_of
payments - Tax Registrations API to manage your connected accounts tax registrations
- Exporting Tax Transactions with our Reporting API
First, you need a Stripe account. Register or Login now.