How to Collect Sales Tax with Stan

Do you need to collect sales tax from your customers? Check out this article to learn how you can enable sales tax in your store! 💸

Using Stripe to Collect Sales Tax on your Stan Store

At this time, collecting sales tax is only possible if you have Stripe connected as a payment processor. Based on your customer’s address and the products you sell, Stripe determines the accurate tax calculation, with rooftop level precision in over 11,000 tax jurisdictions (country, state, county, city, district).

In general, most transactions are taxable in the jurisdiction where the customer resides. Stripe Tax assumes the sale of most goods or services to be taxable unless specifically exempted by a taxing authority! 👍

🚨 Please Note that Stripe will only collect sales tax from customers located in your tax region. If you have customers in other tax regions, please consult a tax professional to determine next steps. For more information on tax regions, please scroll down to Tax Collection Based on Your Country

Enabling Tax Collection on Stan

1. Head over to your Settings tab in the bottom-left corner of your Stan account

2. Select the Payments tab and make sure Stripe is connected. You can do this by clicking the Manage button and following the steps to set up your Stripe account.

   📣 Even if you're collecting taxes using PayPal, you'll need to have Stripe connected in order to collect taxes.

3. Then, scroll down to the section where it says Enable Taxes
4. Next, toggle it on!

4. From here, you'll need to decide how you'd like to charge your taxes. This is completely up to you!

• Inclusive ➡️ When taxes are already included in the total. No surprise fees at checkout.
• Exclusive ➡️ When taxes are added to the subtotal at checkout. This is most common in the US.

5. Next, enter in the address of where you will be filling your taxes from. This address will indicate which Tax region will be taxed! 🌏

How to Export Your Collected Tax Information

1. Log into your Stan store
2. Head over to your Income tab from the left sidebar
3. Click Download CSV from the right side of your sales list like below
   1. You can use the filters at the top of your list to narrow down the list you'd like to export.

Tax Collection Based on Your Country

United States:

If you are located in the United States, you will only be able to charge tax in the state you are registered.

• Please note: Alaska, Delaware, Montana, New Hampshire and Oregon do not have sales tax, so you will not have the ability to enable the feature!
• Please note: New York and California do not charge sales tax on digital goods, so you will not have the ability to enable this feature!

EU Countries:

If you're located in the EU, you will be registered as an EU OSS in addition to your specific country.

Canada, Australia, New Zealand, United Kingdom:

• If you are located in Canada, you will be charged HST where applicable and GST everywhere else
• Australia, New Zealand, or the UK, you will be charged Federal tax.

How to Register Using Another Tax Region

If your business is registered in more than one tax region, we can manually add the additional tax region to your Stan store. Simply reach out to us at friends@stanwith.me and let us know what state and country you need to be added to. If possible, please include the address ✅

Tax Code Used for Tax Collection on Stan

When collecting taxes, there are many tax codes that are available to use. We are currently using the following tax code  txcd_10000000 to collect taxes on Stripe.

For more information on tax codes, visit Stripe here.