Configure the extension
Configure the Stripe Tax Extension for WooCommerce.
After you install the Stripe Tax Extension for WooCommerce, you can connect it to your Stripe account and configure your tax settings.
If you previously configured these tax settings in the Stripe Dashboard, the values populate automatically in the Stripe Tax extension. When you edit the values in the extension, the changes automatically update in the Stripe Dashboard in live mode. The WooCommerce extension doesn’t support sandbox testing. You can conduct tests in live mode, but transactions incur fees according to the Tax Basic: Pay-as-you-go (PAYG) pricing plan.
If your menu varies from the steps below, refer to the WordPress instructions to use a plugin.
Connect your Stripe account
On your website’s dashboard, navigate to WooCommerce > Settings. On the Stripe Tax tab, click Connect with Stripe to log in to your Stripe account or create a new one.
After successful authentication, navigate back to the Stripe Tax settings to continue with the configuration steps.
Configure your sales tax settings
On the Stripe Tax tab, under Configure your sales tax settings, complete the following:
- Enter your head office address, which is your company’s legal address.
- Choose your default product tax code, which allows Stripe to calculate the tax rate for categories of products.
- Click Save changes.
On the Tax tab, you can decide if the prices you set for your products are inclusive or exclusive of tax.
Manage tax registrations
Tax isn’t applied until you add registrations for jurisdictions where you need to collect tax. Our monitoring tool can help you understand where you might be registered or need to register.
If you’re already registered in certain jurisdictions and want to start collecting tax immediately, you can add those registrations to your configuration. You can only add tax registrations for supported countries and registration types. Some jurisdictions might require additional information.
Add tax registration
On the Stripe Tax tab, under Tax registrations, click Add new. Choose the jurisdiction from the dropdown, then click Save changes.
Delete tax registration
To delete a registration, hover over the registration, then click End immediately. To delete multiple registrations, select them from the list, then click End immediately from the Bulk actions dropdown.
Collect taxes
To start collecting taxes:
On the WooCommerce > General tab, select Enable tax rates and calculations, then click Save changes. This setting enables rate configuration and tax calculation during the checkout process.
On the WooCommerce > Stripe Tax tab, select Enable Stripe Tax, then click Save changes. This setting enables automatic tax calculation and collection on all transactions.
After selecting a product from your WooCommerce store, you can enter an address on the Checkout page to automatically calculate tax based on the address. Test the tax behavior using the addresses where you registered, as well as the store address.
Certain product tax codes, such as most services, are taxed at origin (your head office address). Scenarios also exist where zero tax is calculated.
View tax reports
After you start collecting taxes, the Stripe Tax extension sends the transactions to Stripe Tax. You can then access tax reports and exports in the Stripe Dashboard.
Learn more about the types of tax reports available in Stripe Tax.