Charge tax on Store orders with Stripe Tax

Store does not calculate tax itself. With Calculate tax with Stripe Tax on, Stripe calculates the tax for each checkout in your own Stripe account and charges it with the order. It is off for a new Store.

Calculating tax is not registering for it, filing it or paying it. Stripe Tax charges tax only for the places where your Stripe account has a tax registration. You remain responsible for registering where the law requires, and for filing and paying the tax you collect.

Turn on Stripe Tax

1. In your Stripe Dashboard, open Tax, add your head office address, and add a registration for each place you collect tax.
2. In Store › Settings, turn on Calculate tax with Stripe Tax.

Magpie checks your Stripe Tax setup before turning it on, and says what Stripe still needs when it is not set up. The setting shows who turned it on and when. Stripe Tax registrations lists the registrations Stripe has for your account. With no active registration, checkouts include no tax.

Prices that include tax

Prices include tax chooses how your prices are read:

• Tax is added at checkout: Stripe adds the tax to your prices and shipping, so the buyer pays more than the listed price.
• Prices include tax: the tax is part of your listed prices, and the buyer pays the listed price.

The choice applies to checkouts started after it is changed.

Business buyers' tax IDs

Turn on Collect tax IDs from business buyers to let a buyer enter a tax ID, such as a VAT number, on Stripe's payment page. The tax ID is kept on the order. Stripe can then apply a reverse charge where your registrations allow it.

Tax categories for products

Each product is sent to Stripe with a tax category (a Stripe tax code). A physical product uses Stripe's general code for physical goods and a digital product uses its general code for digital goods, unless you choose another. While Stripe Tax is on, a product's page has Tax category: choose a category, or type any code from Stripe's list of tax codes. Magpie checks a typed code with Stripe before saving it.

Shipping uses the shipping tax code set in your Stripe Tax settings.

A gift card is sold as not taxable, because tax applies to what it later pays for. While Stripe Tax is on, buyers cannot use gift cards at checkout; see Store gift cards and store credit.

Orders and Accounting

The cart says that tax is calculated at checkout. When an order is paid, it keeps the tax Stripe charged, the tax on each item and on shipping, and any tax ID. Accounting records Store tax under Sales tax payable, so it is included in sales tax returns. A refund takes back its share of the order's tax.

If an order was charged tax you did not expect, check the registrations in your Stripe Dashboard first. If they are right, note the order number and Contact support.