#johnnychimpo
midnight dagger
sterile patrol
Hi there, application_fee_amount is not a param tax. Can you tell me what you mean by tax is not transferred ?
cosmic crypt
thanks for the reply, jack
given the following:
price: $100
tax: $6
application fee amount: $15
i would like the amount transferred (via the transfer_data.destination) to be $85
$106 (amount charged) - $6 (tax collected) - $15 (application fee) = $85 to the seller's connected account
does this help?
sterile patrol
OK. so basically you just want to transfer $85 to the connected account?
cosmic crypt
in this example, yes
but ideally the tax would automatically NOT be transferred since the actual tax amount isn't known until the invoice is paid, right?
sterile patrol
If you know how much you want to transfer the connected account, you can just remove the application_fee_amount and specify the amount in transfer_data.amount.
cosmic crypt
i see that but it is my understanding (i) i will not know the actual tax charged until after the invoice is paid and (ii) the invoice cannot be updated after it has been paid
are these assumptions correct?
sterile patrol
If you really want to know the tax amount, you can find it from the tax property of the invoice (https://stripe.com/docs/api/invoices/object#invoice_object-tax)
No, you don't need to wait for the invoice to be charged to know the amount, the tax will be set when the invoice is open
cosmic crypt
but isn't that based off the zip code sent when the invoice is created and not the zip code associated with the payment source?
sterile patrol
Tax is complicated. You can learn more about tax calculation here https://stripe.com/docs/tax/supported-use-cases
cosmic crypt
i understand that tax is complicated, hence the question
which still stands, by the way
sterile patrol
What's your exact question again? My understanding is you were asking about tax calculation, and that's why I sent you the doc
cosmic crypt
pardon me, my question is: at what point is the tax on the invoice the actual tax charged?
and thanks again for your help
sterile patrol
The tax amount is finalized when the invoice is finalized (aka the invoice is at open status)
cosmic crypt
excellent
is there a way to have the application fee and the tax appear as separate line items in the "Balance change from activity" financial report?
specifically, the itemized download
sterile patrol
I'm not familiar with reporting. Can I suggest you to reach out to Stripe Support? https://support.stripe.com/contact
cosmic crypt
thanks again
so to summarized the application fee + tax discussion above, it sounds like we should (i) pay the invoice (in order to finalized it so that tax is accurate), (ii) fetch the invoice (in order to get the actual tax collected by stripe), and then (iii) initiate a transfer to the connected account
did i understand this correctly?
sterile patrol
No, you don't need to pay the invoice to get the tax amount.
Also I'd like to make a correction, the tax is calculated based on the invoice items, even when the invoice is in draft mode.
So that before you finalize the invoice (https://stripe.com/docs/api/invoices/finalize#finalize_invoice) you can specify the application_fee and transfer destination. Note that you can't modify the invoice after it's finalized
cosmic crypt
So does that mean that my assumption concerning the accuracy of the tax amount on the Draft Invoice is incorrect?
sterile patrol
Yes. You don't need to pay the invoice to get the tax amount.
cosmic crypt
But isn't the invoice item associated with a customer id rather than the actual payment source?
I ask because I would imagine a customer could have a zip code in Iowa but use a payment source (credit card) that has a billing zip code in Chicago
In which case the tax on the invoice item would be calculated for Iowa but charged for Chicago
sterile patrol
No, the tax will be calculated based on the customer's address, not the billing_details.address of the payment_method.
So in your example, the tax will be calcualted based on the fact that the customer is from Iowa.
cosmic crypt
Oh wow. I had no idea that was the case. This is very helpful (and sorta surprising).
Thank you SO MUCH for your help
sterile patrol
No problem. Note that in some state, the seller's address will be taken into consideration for tax calculation. You can refer to the doc that I sent earlier for more details.