Sales and other indirect tax requirements vary by region, so we recommend checking with a qualified accountant to understand your business’s setup and any required taxes you should be including in your charges.
There are two ways to charge your customers sales tax, VAT, or GST.
Stripe Tax - Stripe Tax automatically calculates and collects the right amount of tax depending on the tax code you select and your customer's location. You can see where you need to register to collect taxes based on your transaction history, have the ability to choose whether tax is applied inclusively or exclusively, and can access reports to see how much tax you have collected in a given jurisdiction.
Dynamic Tax Rates - With Dynamic Tax Rates, you can manually create your own log of tax rates and apply them to your customers' invoices or checkout sessions. Similarly you can set the rate of tax to be charged inclusively or exclusively. With Tax Rates, Stripe does not calculate relevant taxes for you, and you maintain your log of applicable tax codes and rates. As with Stripe Tax, you are able to export reports of how much tax you have collected.