Automate tax collection and reportingPublic preview

Use the Stripe Tax module for Adobe Commerce to calculate, collect, and report taxes on payments made through any supported Adobe Commerce payment method.

Compared to the native Adobe Commerce tax engine, Stripe Tax provides a simpler configuration and activation process. Because Stripe Tax is dynamic, you don’t need to reconfigure Adobe Commerce when tax rates change for specific product types, locations, or time periods. Stripe continuously updates your local tax rules and automatically calculates the correct tax amount.

Availability

To use Stripe Tax with Adobe Commerce:

• Your business must be based in one of the supported countries.
• Your system must meet these minimum requirements: PHP 7.4 or later, Magento 2 version 2.3.7 or later, Adobe Commerce version 2.3.7 or later.

Contact support if you have questions about setting up Stripe Tax for Adobe Commerce.

Configuration

You can configure the general settings for Stripe Tax in Adobe Commerce on the Tax configuration page.

General settings

To access your general settings in the admin panel of your Adobe Commerce store:

1. Navigate to Stores > Settings > Configuration.
2. In the Sales section, select Stripe Tax.

The following settings are available for configuration:

• Enabled: Set Yes to activate Stripe Tax for your store. This enables the module to start calculating, collecting, and reporting taxes.
• Mode: Select Test to use test credentials for testing the integration without affecting real transactions. Switch to Live when you’re ready to calculate taxes in a production environment.
• Publishable API key: Enter your publishable API key obtained from your Stripe Dashboard.
• Secret API key: Enter your secret API key from your Stripe Dashboard.
• Product prices and promotions: Configure how to calculate product price taxes and discount amount taxes. Set this to either Tax exclusive or Tax inclusive depending on your store’s pricing strategy. If you select Tax exclusive, product prices configured from the admin panel, or discounts applied on the cart don’t include tax. If you select Tax inclusive, the product prices and discounts already include tax.
• Shipping is: Determine how shipping is taxed. Select either Tax free, Tax exclusive, or Tax inclusive based on whether and how you want shipping costs to include tax.

Under the Stripe Tax Exemptions tab, you can find the following additional settings:

• Tax Exempt Customer Groups: Any customer group you select here isn’t charged tax at checkout. For example, if you select Wholesale, wholesale customers won’t pay tax on their orders. You might use this setting if you have certain B2B customers or groups that qualify for tax-free purchasing under your local regulations.
• Reverse Charge Customer Groups: Any customer group you select here is subject to “reverse charge” taxation rules rather than normal sales tax rules. Reverse charge means that instead of you (the seller) collecting and remitting the tax, the buyer (your customer) accounts for the tax themselves. This is common in certain B2B transactions within the EU (and other regions with similar rules). For example, if you select Retailer, Magento and Stripe handle those retailer transactions under reverse charge logic instead of standard tax collection.

Manage product tax classes

You can manage product tax classes to make sure that your products are categorized correctly for tax calculation purposes.

To add, edit, or remove product tax classes in your Adobe Commerce store:

1. From the admin panel, navigate to Stores > Taxes > Stripe Tax Classes to open the Stripe Tax Classes page where you can manage your tax classes.

2. To add a new tax class, click Add a new tax class at the bottom of the Stripe Tax Classes page. This opens a modal where you can select a tax category. Each category represents a specific product tax code. Select the one you want to use for your products, then click Add.

3. You can edit an existing Tax Class if your products are already assigned to tax classes from before you installed Stripe Tax. This allows you to keep those existing tax classes, and assign a product tax code to them. To do so, click Select in the Actions column next to the tax class you want to edit. Choose Set category to assign a new category to the tax class.

4. To rename a tax class, click its name. This opens a modal where you can set a new tax class name. Alternatively, you can expand the Select options list from the Actions column and click Rename or Delete.

5. Changes to the tax classes aren’t saved automatically. To save your changes, click Save Changes.

6. After you configure your tax classes, you can use them to apply tax classes on products:

• From any product edit page, you can configure the product’s tax class using the Tax Class dropdown. The tax classes you’ve added appear on the product edit page.
• Alternatively, you can use the Tax configuration page to set the default tax classes for products when they haven’t been assigned a tax class, or when their tax class has been deleted.

Tax registrations

Before you can perform live tax calculations, you need to add tax registrations in your Stripe Dashboard. You can add tax registrations manually in the Tax registrations section, or through the Tax thresholds section. During the tax registration steps, you can choose between immediate registration, or schedule the registration to begin at a date in the future if you’re planning to register. Stripe Tax only calculates and collects tax on transactions in these locations.

If you start selling to a new country or tax jurisdiction, Stripe can automatically let you know if you need to register for tax in that jurisdiction. This typically happens when your sales volume exceeds the tax threshold of that tax authority. If you have existing transactions on Stripe, you can use our monitoring tool to understand where you might need to register.

Refunds and tax reversals

A tax reversal is triggered when you create a credit memo from the admin area of Adobe Commerce. The tax reversal will be triggered in both cases of creating an Online credit memo or an Offline credit memo.

• Refund Offline: This creates a tax reversal without refunding the payment.
• Refund: This creates a tax reversal and refunds the payment online through Stripe

In cases where the credit memo doesn’t include all of the order items (partial credit memos), then the tax reversal is triggered only for the items on the partial credit memo.

Export tax transactions

If you are in a country where automatic tax reporting is not yet supported, you can export your tax transactions from Tax registrations

• Click on the country for which you’d like to export tax transactions.
• Click the “Export transactions” button at the top right of the registration page.
• Select the date range and columns you’d like to export.
• Click the “Export” button to download the transactions in CSV format.