Third-Party Tax Apps

Stripe Tax offers an end-to-end tax compliance solution that lets you register, calculate, collect, report, and file tax on transactions from around the world. Businesses that have an alternative calculation provider can use them in the Stripe App Marketplace.

How it works

Installing and using an app

You can install a third-party tax app from the Stripe App Marketplace listing. Alternatively, you can turn on the Use automatic tax toggle and select the app you want to use:

1. Go to the integrations tab in your Tax settings and enable automatic tax.
2. The Tax calculation section shows which tax solution you’re currently using. Click on Manage to see other options.
3. After you click Manage, you’ll see which apps are installed and which apps are available to install. If the app you want to use is already installed, you’ll see it in the Available for use section, and you can skip this step. Otherwise, click Install next to your preferred app and follow the installation instructions.
4. After the app’s install, it will show up in the Available for use section. Click Select and follow the instructions. The app you picked will then show up in the Tax calculation section. From this point forward, any new Subscriptions, Invoices, or Payment Links will use “automatic tax” and collect taxes automatically.
5. (Optional) To collect tax on existing Subscriptions, Invoices, or Payment Links you need to update each to use automatic tax. If you have recurring Subscriptions, you can review and update them on the migration page. For more information, update existing subscriptions.

Onboarding with a third-party

If you’ve never used a third-party tax app, there might be additional onboarding. This can include steps such as creating an account, choosing a subscription, and mapping tax codes to Stripe products. These steps vary depending on which app you use.

If you’re having any issues or have any questions related to tax calculation, contact your tax provider of choice as the first line of communication. You can also contact Stripe support.

Uninstalling an app

If you want to uninstall a third-party tax app, you can do so on the Dashboard.

1. Go to the integrations tab in Tax settings and enable automatic tax.
2. In the Tax calculation section, click Manage.
3. Click the overflow menu () next to the app and then click Uninstall app. Follow the instructions.
4. The new tax app will appear in the Available for use section. Click Select and follow the instructions.

Supported apps

Considerations

Ensure the accuracy of your taxes

When you install a third-party tax app, the provider is responsible for making accurate tax calculations.

Fees and billing

Your tax provider determines pricing and bills you for tax calculations. You can contact them with billing questions. If you’re migrating from a legacy third-party tax integration to the one in this guide, confirm with your tax provider what changes to pricing, if any, may apply due to you calculating tax on more supported Stripe products.

Product tax codes and third-party apps

In Stripe Tax, product tax codes determine a product’s tax rate. If you use a third-party tax app to calculate taxes, you need to specify how your products in Stripe map to tax codes with the third-party. You typically do this in the third-party app and the process is specific to the third-party.

Third-party tax app availability

If you’re calculating tax with a third-party, but it’s unavailable for some reason, Stripe won’t apply any tax to the transaction. Subscriptions, invoices, and checkout can still progress forward with zero tax. Subscription cycling will be retried until the tax calculation succeeds.

Supported products

• Subscriptions
• Invoicing including credit notes, previews, and refunds
• Checkout and payment links
• Usage-based billing
• Quotes

Automatic tax and third-party apps on past subscriptions

When you turn on automatic tax and select a third-party app to use, it applies on a go-forward basis. This means any previously created subscriptions, invoices, or payment links might not have automatic tax enabled. If tax isn’t enabled, you can update a given subscription, invoice, or payment link to calculate tax with the third-party app. To see which subscriptions have automatic tax turned off, use your Dashboard migrations page.