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Payments
Finance automation
Get started
Payments
Finance automation
Platforms and marketplaces
Money management
Overview
Billing
    Overview
    About the Billing APIs
    Subscriptions
    Invoicing
      Overview
      API quickstart
      Integrate with the API
      Invoicing without code
      Invoice lifecycle
      Preview invoices
      Edit invoices
      Schedule invoice finalization
      Status transitions and finalization
      Send customer emails
      Generate credit notes
      Invoice customers
      Customers
      Customer credit balance
      Customer tax IDs
      Invoice payments
      Hosted Invoice Page
      Create invoice payment plans
      Payment methods for invoices
      Automated collections
      Invoice customization
      Customize invoices
      Invoice rendering templates
      Group invoice line items
      Summarize line items
      Global invoicing
      Best practices
      Multi-currency customers
      Other invoicing features
      Products and prices
      Manage bulk invoice line items
      Taxes
        Account tax IDs
        Tax rates and IDs
        Manual tax amounts
    Usage-based billing
    Connect and Billing
    Tax and Billing
    Quotes
    Revenue recovery
    Automations
    Scripts
    Revenue recognition
    Customer management
    Entitlements
    Test your integration
Tax
Reporting
Data
Startup incorporation
HomeFinance automationBillingInvoicing

Taxes

Learn about Stripe Tax and how to use it with invoices.

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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
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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

Note

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

Enable the Use automatic tax collection toggle on the tax settings page to automatically enable tax calculation on new invoices you create in the Dashboard.

Stripe Dashboard with the automatic tax toggle set to true

Stripe Dashboard with the automatic tax toggle set to true

Update untaxed invoices

To enable automatic tax calculation for existing invoices:

  1. Click Edit invoice from the Invoice details page, or click the invoice’s overflow menu (), then Edit invoice from the Invoices page to create a new draft in the Invoice Editor.
  2. In the editor, turn on the Collect tax automatically toggle.
  3. If customer is missing address information required for tax calculation, a notification badge alerts you and provides instructions to resolve the problem.
    Invoice editor with the warning badge about missing customer address

    Invoice editor with the warning badge about missing customer address

  4. Save the invoice to enable automatic tax calculations on all future instances of the invoice. Learn more about editing invoices after finalization.

Update invoices with existing tax rates

To replace invoice tax rates with automatic tax calculation, follow the previous steps to edit the invoice. Then remove the applied tax rates and enable the Collect tax automatically toggle.

For more information on automatic tax calculation, see Automatically collect tax on invoices.

Net prices and taxes

You can issue invoices with line item prices that exclude inclusive tax. Tax-exclusive prices are only shown in the invoice PDF. That means, when using inclusive tax, the Hosted Invoice Page and invoice emails show tax-inclusive prices. You can define the settings for net prices in the Dashboard or API.

  • Include inclusive tax—The invoice PDF displays line item prices including the inclusive tax. (This is the default.)
  • Exclude tax—The invoice PDF displays line item prices excluding tax.

Order precedence

If you set a default for line item prices at the customer level, it takes precedence over account-level settings.

To set a default for item prices, go to Default item prices in the Invoice template. Your chosen setting applies to all of the invoices you create through the Dashboard or API. For one-off invoices, use the Invoice Editor to set tax exclusivity. Go to Advanced options and choose to Include inclusive tax or Exclude tax. To learn more, see Create an invoice.

See also

  • Determine customer locations
  • Understand zero tax amounts
  • Reporting and filing
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