Stripe Tax

Stripe Tax works out the tax on each CRMSix invoice from the customer’s address, line by line, and records every sale in Stripe for your tax reports and filing. It handles US sales tax by state, county and city, and VAT or GST in other countries where you’re registered.

What it does

US sales tax depends on the state, county and city the customer is in, and rates change often. Stripe Tax works it out for you, line by line, from the customer’s address. It also handles VAT and GST in other countries where you’re registered, and keeps a record of every sale for your tax reports and filing. Stripe Tax is part of the Professional and Enterprise plans.

Set it up (admins)

  1. In your Stripe Dashboard → Tax, turn on Stripe Tax, set your head office address, and add a registration for each state (or country) where you collect tax. Stripe charges no tax anywhere you haven’t registered.
  2. In CRMSix, go to Settings → Invoices, choose Stripe Tax and save. CRMSix uses the Stripe secret key from Settings → Payments, or you can enter a separate key for tax. A restricted key needs Tax calculations and transactions: write and Tax settings: read.
  3. Choose Check Stripe Tax to confirm it’s active.
  4. Optionally, give each product a Stripe tax code that says what it is, for example txcd_10103001 for SaaS. Products without one use the default code set in Stripe. Some things, like many services, aren’t taxed in some states, and the code is how Stripe knows.

On each invoice

  • Tax address.A new invoice takes the account’s shipping address, or its billing address if there’s no shipping address. For the US, the ZIP code matters most. Change it with Edit while the invoice is a draft.
  • Tax by jurisdiction.Each line shows its tax, and the totals list each tax separately, for example the state tax and the county tax, with their rates. The PDF shows the same.
  • Tax exempt.For a customer with an exemption certificate, such as a reseller or a non-profit, tick Tax exempt on the invoice. Their next invoices start exempt too.
  • Worked out again when issued.The tax is worked out when the draft is created, when you change the tax address, and when you choose Recalculate tax. It’s worked out once more when the invoice is issued.
  • Recorded for filing.Issuing an invoice records the sale in Stripe Tax, under its invoice number. Voiding it reverses that record, and an issued credit note reverses the part it credits.

If Stripe can’t work out the tax (for example, the address is missing or the key was removed), the draft shows why, with no tax added, and it can’t be issued until that’s fixed. A note under the invoice’s lines also explains why there’s no tax, for example “You aren’t registered to collect tax there”.

Voids and credit notes

  • Voiding an issued invoice reverses its sale in Stripe Tax.
  • An issued credit note takes back each credited line’s tax in proportion, and records that reversal in Stripe Tax.
  • A credit note whose reversal is recorded can’t be voided, because Stripe keeps reversals for filing. Invoice the amount again instead.

Stripe Tax is part of the Professional and Enterprise plans. Stripe charges for it separately; see Stripe’s pricing.