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Overview
Product Overview
Configuring your tax settings
Set up
Selecting tax categories
Monitor your tax obligations
Adding a tax registration
Understanding tax registration rules in each location
Integrating
Setting tax categories, products, and prices
Payment Links and Tax
Checkout and Tax
Invoicing and Tax
Billing and Tax
Managing your integration
How tax is calculated
Sales Tax Holidays
Account and customer tax IDs
Address validation
Zero tax amounts and reverse charges
Tax compliance
End-to-end tax compliance
Reporting
Filing and Remittance
Frequently asked questions
Tax
·
HomeBusiness operationsTax

Automatically collect tax on invoices

Learn how to automatically calculate tax on your invoices.

On an invoice, Stripe Tax calculates sales tax, VAT, and GST. To calculate these for each line item, Stripe uses:

  • Your tax settings
  • The customer’s tax settings and location
  • The product tax code and price tax behavior

Log in or sign up for Stripe to activate Stripe Tax.

Set up the customer

We use the customer’s location to determine the relevant taxes to collect. Customers outside of the US need at least a country-level address, while customers in the US require a 5-digit postal code. For Canada, we need at least the province or postal code.

You can add customer location information in the Customer details page by clicking Edit next to Details. To add a customer’s location from the Invoice Editor, click the overflow menu (

) next to the customer. Select Edit customer information, click Add additional details, and scroll down to Billing details.

After you update the location, click Update customer. Stripe applies the new location to all of your customer’s future invoices unless you update it. For more information, see Determine customer locations.

Set up line items

To calculate tax on each line item on an invoice, you need to set a tax behavior and optionally a tax code.

Customize tax settings for one-off line items

Customize line items in the Invoice Editor by selecting the tax behavior from the Include tax in price drop-down menu.

Customize tax settings for one-off line items

Customize tax settings for one-off line items

Customize tax settings for product-based line items

You can use both the Dashboard and the API to customize tax settings for product-based line items.

On the Products page, you can select both the tax behavior for a particular price and the optional tax code for the product. The tax behavior is per price. You can’t change the tax behavior after you select it, but you can create new prices or archive old ones. To set up a tax behavior, click Add a price (or Add another price if you already have one) and select it from the Tax behavior drop-down menu.

To set up a tax code, select it from the Tax code drop-down menu when you create a new product or edit the details of an existing one.

Customize tax settings for one-off line items

Customize tax settings for one-off line items

Enable automatic tax

After specifying a tax behavior and tax category, you can add the price to the customer as an invoice item:

Command Line
curl https://api.stripe.com/v1/invoiceitems \ -u
sk_test_4eC39HqLyjWDarjtT1zdp7dc
: \ -d customer=cus_13729he8947269 \ -d price=price_1K6mzG2eZvKYlo2CK7kcBICl

Set the toggle in the Invoice Editor. In the API, you need to pass the automatic_tax field to enable or disable automatic tax calculation. Both steps are required to start calculating tax automatically.

Command Line
curl https://api.stripe.com/v1/invoices \ -u
sk_test_4eC39HqLyjWDarjtT1zdp7dc
: \ -d "customer"="cus_13729he8947269" \ -d "automatic_tax[enabled]"="true"

To enable automatic tax calculation when you update an invoice, add the invoice parameter alongside automatic_tax:

Command Line
curl https://api.stripe.com/v1/invoices \ -u
sk_test_4eC39HqLyjWDarjtT1zdp7dc
: \ -d "invoice"="inv_12345" \ -d "automatic_tax[enabled]"="true"

Use a credit note to process a refund of charges associated with an invoice. Credit notes show up in Stripe Tax reporting to reflect the reduction of your overall tax liability.

Learn more about issuing credit notes.

See also

  • Determine customer locations
  • Understand zero tax amounts
  • Reporting and filing
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On this page
Set up the customer
Set up line items
Enable automatic tax
See also
Stripe Shell
Test mode
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Welcome to the Stripe Shell! Stripe Shell is a browser-based shell with the Stripe CLI pre-installed. Login to Stripe docs and press Control + Backtick on your keyboard to start managing your Stripe resources in test mode. - View supported commands: - Find webhook events: - Listen for webhook events: - Call Stripe APIs: stripe [api resource] [operation] (e.g. )
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