Teelu | Stripe Developers | Page 1

craggy solarBOT Mar 16, 2023, 3:30 PM

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halcyon beacon Mar 16, 2023, 3:31 PM

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https://stripe.com/docs/api/tax_rates/create I dont see anywhere we can specify the taxable amounts

Stripe API reference – Create a tax rate – curl

Complete reference documentation for the Stripe API. Includes code snippets and examples for our Python, Java, PHP, Node.js, Go, Ruby, and .NET libraries.

livid wasp Mar 16, 2023, 3:32 PM

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Yeah I don't think that's doable via tax rates. You would just have to adjust the percentage to account for this

halcyon beacon Mar 16, 2023, 3:33 PM

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Is that something Stripe Tax would handle?

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or curious, how would it handle that?

livid wasp Mar 16, 2023, 3:38 PM

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Not sure what you mean. So if you want a tax rate to only tax 80% of the transaction and the tax rate is 10%, then you'd want to pass in a tax rate of 8%

halcyon beacon Mar 16, 2023, 3:42 PM

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Hmmm okay. I was wondering if Stripe Tax handles it any differently, or if its using the tax_rate objects as well with the approach you mentioned

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I say that because the invoice will show the tax % used, which doesn't reflect that the rate might be higher but only applicable to a certain portion of the total

livid wasp Mar 16, 2023, 3:46 PM

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Ah you mean whether our automatic tax product handles this differently?

craggy solarBOT Mar 16, 2023, 3:48 PM

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halcyon beacon Mar 16, 2023, 3:49 PM

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Correct. The approach I was thinking was either one of the two now

the adjusted rate on the full amount
the real tax rate shown with a total taxable amount which doesn't necessarily equal the subtotal

livid wasp Mar 16, 2023, 3:51 PM

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Got it. I'm not sure off the top of my head actually. I also have to step out, but @maiden cliff do you know if it's possible to only tax 80% of the total with automatic tax? Some states don't tax 100% of the total (I'm just learning this).

maiden cliff Mar 16, 2023, 3:52 PM

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If you're using automatic tax our tax engine should take that kind of thing into account. Let me catch up with the thread...

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Do you know which states are subject to this kind of thing?

halcyon beacon Mar 16, 2023, 3:57 PM

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Texas is one of those states for SaaS offerings

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Texas is one of these states that considers SaaS as a taxable data processing service.

Data processing is 20% exempt from sales tax. In that case, Texas provides a 20% exemption on the total charge to the customer for a data processing service. 

Another way to put it is that 80% of the total charge to the customer represents the actual taxable amount.

maiden cliff Mar 16, 2023, 3:59 PM

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With Stripe Tax that should be automatically taken into account based on the tax category set on the Product: https://stripe.com/docs/tax/products-prices-tax-categories-tax-behavior#tax-category-on-product

halcyon beacon Mar 16, 2023, 4:06 PM

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Okay, but would it show the adjusted tax rate on the invoices? or have the actual rate with the tax calculated with 80% of the total

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eg, tax rate of 10% on 100, only 80% being taxable
Does the invoice show 10% tax rate, $8 tax?
Or 8% tax rate, $8 tax?

maiden cliff Mar 16, 2023, 4:12 PM

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I'm not sure. You should be able to test this in test mode to determine the behavior.

halcyon beacon Mar 16, 2023, 4:14 PM

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Okay I will go ahead and play around with that

#Teelu