Install and configure the Stripe Tax app
Use the Stripe Tax app for BigCommerce to automatically calculate and collect.
Use the Stripe Tax app for BigCommerce to automatically calculate and collect sales tax, VAT, and GST. The app applies the accurate tax rate for all your transactions in your BigCommerce store. After you install the Stripe Tax app for BigCommerce, you can configure your tax settings.
Install the Stripe Tax app
- Open the Stripe Tax app in the BigCommerce marketplace, and click Install > Confirm to install the app.
- Within five minutes after installing the app, click Connect Stripe. You must have an active Stripe account.
- After you connect your Stripe account, you can configure your tax settings.
Configure your Stripe Tax settings
Complete steps 1 to 4 in the Stripe Tax setup guide. You can skip step 5 because you don’t need to enable tax in your Stripe integration or use the Stripe Tax API.
In the Stripe Dashboard:
- Set your origin address.
- Select your preset tax code.
- Select whether or not prices include tax by default.
- Add registrations.
Configure your BigCommerce store to use the Stripe Tax app
Next, configure BigCommerce to set up Stripe Tax as a tax service:
- In your BigCommerce dashboard, go to Settings > Tax.
- Under Configured tax services, click Edit next to Stripe.
- Click Test Connection to verify that your app is correctly installed.
Set up the origin address
In your BigCommerce dashboard, go to Settings > Shipping > Edit. Set your shipping origin address, if you haven’t already.
You must update the origin address in both the Stripe and BigCommerce dashboards. These settings don’t sync automatically. Tax calculations through the Stripe Tax app for BigCommerce always use the BigCommerce origin address, while tax monitoring and tax registration availability use the Stripe origin address.
Configure the countries to use Stripe Tax
In your BigCommerce dashboard, update the Provider targeting to choose the countries where you want to use Stripe Tax.
Set the provider options
In your BigCommerce dashboard, under Provider Options, select Please submit my order data so that I can use solution tax reporting and returns features.
OptionalSet up tax codes
Handling, gift, and fee codes
In your BigCommerce dashboard, under Provider Options, set the following product tax codes:
- Handling code
- Gift wrapping code
- Fees code
You can’t use the shipping product tax code txcd_.
Shipping code
In your BigCommerce dashboard, under Provider Options, you can set the Default shipping code. We recommend leaving this value empty.
The only supported shipping product tax code is txcd_, which is the default value.
Default taxable code
Stripe Tax uses the value that you configured in the Stripe Dashboard. We recommend leaving this field empty to prevent any syncing issues. If you provide a value for this field, the app doesn’t automatically sync the value with the corresponding setting in the Stripe Dashboard.
Configure the tax treatment for your store
In your BigCommerce dashboard, go to Settings > Tax > Store tax settings. Click Edit and then set the Prices entered with tax to one of the following:
- Yes, I will enter prices inclusive of tax
- No, I will enter prices exclusive of tax
The value that you configure in the BigCommerce dashboard takes precedence over the value configured in the Stripe Dashboard. These values don’t sync automatically between Stripe and BigCommerce.
OptionalConfigure the tax code for each of your products
To assign a product tax code for each of your products, go to Pricing > Show Advanced Pricing > Tax Provider Tax Code. The product tax codes that you assign override the default tax code.
OptionalConfigure the tax exemption status for your customers
To set a tax exemption for your customers, go to Customers. For each tax-exempt customer, click Edit and set the Tax exempt code to customer_.
You don’t need to make any corresponding updates in the Stripe Dashboard.
OptionalLimitations
- You can’t update your Stripe connection directly. You must reinstall the app to link your BigCommerce Store to a new Stripe account.
- You can’t specify multiple shipping addresses for a single order. Create separate orders for each unique shipping address.
- We limit tax calculations to 100 line items. Create separate orders for purchases of more than 100 line items, or set a 100 line item maximum on each order.
- We provide limited support for currencies with three or more decimals. We recommend converting prices to a supported currency.
OptionalHandle tax for refunds, voids, and credits
The Stripe Tax app for BigCommerce supports various tax operations including refunds, voids, and credits through BigCommerce’s tax interface.
Full refunds
Initiate full refunds by following the guide for processing refunds in BigCommerce. When you process a full refund through BigCommerce, the app automatically reduces your tax liability and updates tools like the tax obligations monitoring tool. Refunds don’t refund the Stripe Tax fees. Only the tax liability is adjusted.
Partial refunds
BigCommerce’s standard refund process allows you to specify a refund amount that is less than the original transaction amount. This process automatically adjusts the tax quote to update the tax liability according to the amount refunded.
Voids and credits
The app also supports tax voids and credits through BigCommerce’s tax interface:
- Voids invalidate the entire tax quote and are typically used for order cancellations or unsettled refunds.
- Credits (adjust tax quote) replace the tax quote with updated calculations, used for partial refunds or order modifications.
You conduct all tax operations through the BigCommerce Dashboard, and these operations automatically reflect in Stripe Tax calculations.
Testing
To troubleshoot the Stripe Tax app for BigCommerce, add a product to the shopping cart and then start the checkout process.
Note
The Stripe Tax app for BigCommerce only works in live mode. You can’t use the app in test mode or in a sandbox environment.
If you don’t see a tax amount displayed, do the following:
Verify that you installed and connected the Stripe Tax app correctly. Follow the installation steps again.
Verify that the customer you added is in a market configured in the Provider targeting tax setting.
Verify that the customer’s address is located in one of the registered locations. Many businesses miss or skip this step.
Verify your tax registrations in the Stripe Dashboard.
Verify that the customer isn’t tax-exempt.
Verify where your tax is calculated. Some product tax codes might use the seller’s address instead of the shipping address for tax calculations. Check the Dashboard logs to determine the exact location where your taxes are applied. We recommend that you select a product tax code with a description that closely matches your product. This is important because incorrect tax calculations often occur when selecting a general product tax code instead of a specific one. For example, selecting General - Services when a more specific category applies can result in taxes calculated based on the seller’s location. Selecting the most accurate tax code ensures taxes are calculated correctly.
For more information about why Stripe Tax applies zero tax to some calculations, see Zero tax amounts. If you’re still experiencing issues after following these troubleshooting steps, contact us.