#Quentin Gabriele

1 messages · Page 1 of 1 (latest)

humble prairieBOT
shadow girder
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I guess you're using destination charges with o_b_o and in that case any objects would need to exist on the platform account

somber mountain
shadow girder
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Depends what you mean by 'put them in the connected account'?

somber mountain
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I mean i do not want to be responsible for these taxes (declaring and paying them). The connected account should

empty needle
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Hey! Taking over for my colleague. Let me catch up.

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When you use on_behalf_of, then Charges are settled in the connected account’s country and settlement currency. Meanwhile it's not clear honestly with tax. I'll ask for another feedback...

winter locust
somber mountain
# winter locust per https://stripe.com/docs/tax/faq#what-account-types-and-charge-flows-for-conn...

From my understanding of this part

However, if the seller or connected account is the business of record, it can be more complicated. With Stripe Connect, the connected account is the business of record when you charge directly on the connected account, or use “destination with obo.”

In the case where the connected account is the business of record, whether the connected account or the platform is responsible for the tax depends on if the platform is considered a marketplace facilitator
There is a way to use Stripe Connect where the connected account is responsible for tax. I want to use this pattern.

But I can't use automatic tax calculation with Stripe Tax, i understand that. In case I don't want to use the Stripe Tax paying service does that means I can't use line_items.*.tax_rates at all ?

And considering the previous point where the connected account if responsible for taxes. Do I only can indicate taxes on checkout by creating a line_item named like "Sales Tax" ?

winter locust
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There is a way to use Stripe Connect where the connected account is responsible for tax. I want to use this pattern.
that way is Standard accounts with Direct Charges

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. In case I don't want to use the Stripe Tax paying service does that means I can't use line_items.*.tax_rates at all ?
I don't know 100% how our pricing works but as far as I know if you create and pass your own explicit txr_xxx objects those don't have a fee since we are not calculating using our Stripe Tax product. But I could be wrong.
Do I only can indicate taxes on checkout by creating a line_item named like "Sales Tax" ?
a low tech option is calculating a tax amount yourself and adding it as a line item yes; but obviously using the tax-specific products and parts of our APIs would be better overall.

somber mountain
# winter locust > . In case I don't want to use the Stripe Tax paying service does that means I ...

As a quick solution I will go with:

  • connected express account
  • I compute tax_rate myself (actually I ask the connected account to give me the rate)
  • I create a checkout session with obo where I put the Tax as a line_item
    With this setup I'm a not the business of record, the connected account is, and so I'm not responsible for these taxes (but they are included in the checkout).

Am I right ? Or am I violating the law or Stripe terms ?

(thanks a lot for your answers. you saved my entire week)

winter locust
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Or am I violating the law or Stripe terms ?
I can't answer that

somber mountain
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Ok thanks, (is there a Service to get legal support from Stripe ?)

winter locust
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there's nothing like that I'm aware of, your business is responsible for its own tax compliance

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our recommended solution here would be what's in the FAQ, i.e. Standard Accounts with Direct Charges thus that the connected account owns their own Stripe account and can sign up for Tax there. If not using automatic tax there can be multiple ways to use the API(via explicit line_item.tax_rates objects instead, or using a generic line item and calling it "Tax") but we can't vouch or speak to the implications of those.

somber mountain
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All right thanks, I will explore the Standard account solution for a robust solution