How to Collect Sales Tax with Stan

If you're required to collect sales tax from your customers, you can easily enable automatic tax calculation in your Stan Store. This ensures your customers are charged the correct amount of tax based on their location and your product type — no manual setup needed 💪

How Tax Calculation Works

📦 Product & Location-Based

Once tax collection is enabled, Stan automatically calculates the correct amount of tax at checkout. The calculation is based on two main factors: your customer’s address and the type of product you're selling.

🧭 Accurate Across Regions

Stripe handles this with rooftop-level accuracy across more than 11,000 tax jurisdictions — including country, state, county, city, and district levels. In most cases, transactions are considered taxable unless a specific exemption applies in your customer’s location.

📍Tax Region Limits

Stripe will only collect tax from customers located in your registered tax region. We recommend consulting a tax professional if you have customers in other regions or you are registered in multiple regions. (You can find more details in the “Tax Collection by Country” section below.)

How to Enable Tax Collection

1. Go to Settings (bottom-left corner of your Stan dashboard).
2. Click on the Payments tab.
3. Scroll to the Automatic Tax Selection section and toggle it on. (Note: this may look different on your store and may be labelled the Enable Taxes section).

4. After you have toggled on Automatic tax collection, Click the Manage Tax Setup button.

5. Once you are inside the Stripe Tax Setup section, click Edit to add your tax address — this is the location of your business. This determines your tax region.

6. Click Edit to select your Product Tax Code. When you select a tax code from the drop down, there will be an explanation of what each selection means.

7. Click on the Tax Registration section. If your tax registration area is already shown, you can skip this step. If it isn’t shown, click Add Registration to select your Country and applicable registrations.

8. Choose how you want taxes to appear at checkout:

• Inclusive: Taxes are built into the product price (no surprise fees).
• Exclusive: Taxes are added on top at checkout (most common in the U.S.).
• Choose Automatically by Currency: Taxes will be added at checkout if you are in the U.S. or Canada, and included in the price if you are using any other currency.

You’re good to go! Tax will now be calculated at checkout 🎉

How to Export Your Collected Tax Info

Need to download your tax data for accounting?

1. Head to the Income tab.
2. Click Download CSV above the Amount column.
3. Use filters to narrow down your export, if needed.

Tax Collection by Country

United States

• You can only charge tax in the state where you're registered.
• Sales tax cannot be enabled in Alaska, Delaware, Montana, New Hampshire, Oregon (no sales tax), New York, and California (no tax on digital goods).

EU Countries

• You’ll be registered as part of the EU OSS, in addition to your country.

Canada

• You’ll be charged HST where applicable, and GST elsewhere.

UK, Australia, New Zealand

• You’ll be charged federal tax based on your country’s regulations.

Tax Code Used on Stan

Stan currently uses the following Stripe tax code: txcd_10000000    

You can learn more about Stripe’s tax codes here.