Automatically collect tax on Payment Links

This short video demonstrates how you can quickly automate tax collection with no code by using Payment Links.

Before collecting tax on your Payment Links, you need to configure your tax settings within the Dashboard.

Stripe Tax uses information stored on the Products and Prices APIs to determine the right rates and rules to apply when calculating tax. Update the products and prices you use to include:

1. Tax behavior: The tax behavior on a price can be either inclusive or exclusive. This determines how the buyer sees the tax. When you set tax behavior to exclusive, it adds tax onto the subtotal amount you specify on your price. This is common in US markets and for B2B sales. When set to inclusive, the amount your buyer pays never changes, even if the tax rate varies. This is common practice for B2C buyers in many markets outside the US.

   Setting the tax behavior explicitly on a price is optional, if you set up the default tax behavior in the Stripe Tax settings. You can override the default tax behavior setting by setting a tax behavior on a price.

2. (Optional) Tax code: A tax code is a classification of your product or service for Stripe Tax that makes sure we apply the correct tax rate to your transactions. Some examples include “Audio book,” “Gift card,” or “Software as a service.” If you don’t set the tax code, Stripe Tax uses the preset tax settings.

Learn more about Products, prices, tax codes, and tax behavior.

In the Dashboard, open the Payment Links page and click + New. Then:

1. Select +Add a new product.
2. Fill out the product details.
3. Click Add product.
4. Click Next.
5. Click Create link.

We enable Stripe Tax automatically on all Payment Links unless you switch off the toggle at the bottom of the tax settings page. In the Payment Link configuration page, under the Advanced options section, you’ll see that Collect tax automatically is already on.