Activating Stripe Tax for Store Transactions

SHOPLINE merchants can enable Stripe Tax for tax calculation and filings by installing the StripeTax app and linking an authorized Stripe Tax account. Before using Stripe Tax as your official tax calculation service, please review this guide carefully and follow the instructions to complete the setup.

Installing and Authorizing the StripeTax App

Follow the steps below to install the StripeTax app and authorize your Stripe account:

1. Visit the SHOPLINE App Store and search for the StripeTax app. 
2. Click Install to authorize the app and complete the installation.
3. After successful installation, click Link Stripe account on the app's homepage.
   
4. On the account authorization page, enter your Stripe account credentials and click Submit to complete the account linking process.
   

Once authorization is successful, your account details will be visible in the Account information section of the StripeTax app.

Activating the Stripe Tax Calculation Service 

To use Stripe Tax for tax calculation, follow these steps to complete the setup:

1. In the StripeTax app, enable the toggle to activate the service.
   
2. In the Tax settings section, click the Tax calculation method option and select a tax method based on your business needs. You have two options:

• • Calculate tax and submit. When an order receives payment, a document will be automatically created and submitted to Stripe.
  • Tax only. When an order receives payment, you’ll need to manually submit the relevant information to Stripe.

3. Follow these steps to switch your tax service to Stripe Tax:   

3.1 Go to Settings > Taxes and Fees.

3.2 Locate the country/region for which you want to switch the tax service to Stripe Tax, and click the pencil icon.

3.3 In the Current taxation service card, click Change the service.

3.4 Select StripeTaxConnect and click Complete.

The Stripe Tax service will be applied to the configured countries/regions immediately.

Configuring and Updating Stripe Tax Details

Maintaining accurate and up-to-date tax information is essential for precise tax calculations. You can update and manage the following tax details for your Stripe Tax account in the app:

• Tax name: The tax name you set will be displayed to customers at checkout. Default tax names are provided for different countries/regions and can be edited, but they must not exceed 20 characters.
• Tax code management: E-commerce businesses sell a wide range of goods and services, and each business category is subject to different tax regulations. To ensure accurate tax calculations, tax codes are used to associate specific products or services with the correct tax rates. To streamline this process, Tax code management is categorized into: 
  • Product type: Corresponds to SHOPLINE's standard product categories and supports tax code import/export functionality.
  • General type: For products such as Shipping or Custom products, you need to set the tax code under this category. Tax code import/export functionality is not supported here.
    

    Note: For detailed information on Stripe Tax codes, please refer to the Stripe Tax Code Documentation.

• Tax registration information: Tax registration information settings allow you to manage tax registrations for your linked accounts. If your linked account has not added tax registration but tax is calculated for that jurisdiction, Stripe Tax will return the tax amount and set the taxable reason to 0.00.
• Other settings: 
  • Tax address: Represents the merchant's business location, determining where the merchant needs to collect sales tax, VAT, or GST. Only one tax address is supported. Please ensure that you maintain the correct tax address.
  • Product tax code: Defines the default tax settings for the merchant's products and prices. If you have not set tax codes in Tax code management, the system will use the tax codes maintained in this section for tax calculations.

Switching Stripe Tax Accounts

The StripeTax app allows you to switch between Stripe accounts. Before switching, it is recommended that you log in to the Stripe platform to verify the tax and other data associated with the relevant account to ensure you switch to the correct one. To switch accounts: 

1. In the StripeTax app, click the Change account option in the Account information section.
   
2. Select a previously linked account or create a new Stripe account.
   

Stripe Tax Usage Limitations

• The maximum product amount allowed for Stripe Tax calculation is $9,999,999,999.99. Amounts exceeding this limit will prevent tax calculations.
• Stripe supports over 135 currencies, each with unique decimal precision rules. Refer to the official Stripe documentation for specific details.