Jasperste | Stripe Developers | Page 1

junior aspenBOT Apr 13, 2023, 8:30 AM

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thorn lotus Apr 13, 2023, 8:32 AM

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I don't believe so. There's some detail on this here: https://stripe.com/docs/tax/faq#what-account-types-and-charge-flows-for-connect-do-you-support

Stripe Tax FAQ

Read the frequently asked questions about Stripe Tax.

rich storm Apr 13, 2023, 8:36 AM

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Thanks for the quick answer!

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One of the sentences there state

If you’re using application_fee increase the application_fee to make sure the funds stay on your platform.

It's a bit unclear to us what it means, it seems like tax is calculated in some cases or such?

thorn lotus Apr 13, 2023, 8:46 AM

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We'd calculate tax on the whole transaction, but we wouldn't automatically increment the application fee to account for any tax due on that

rich storm Apr 13, 2023, 8:54 AM

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Thanks! Sorry for another related questions; We are required to calculate tax on the platform fee we bring into account for connected account. We currently do nothing with tax at all for Connect.
Would this be possible to configure this for the application fee? Since setting tax would target the whole transaction and for standard require setting up tax per account

thorn lotus Apr 13, 2023, 8:56 AM

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Does the docs not answer this? With direct charges, the platform would need to manually calculate tax and increment the application_fee accordingly

junior aspenBOT Apr 13, 2023, 9:15 AM

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rich storm Apr 13, 2023, 9:15 AM

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It wasn't clear from the docs indeed, hence the question. Sorry to bother you about this. It was unclear how to approach tax for the application fee since the total sum is charged to customers, but the fee is charged to connected accounts. Hence the difference

finite geode Apr 13, 2023, 9:17 AM

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Hi! I'm taking over this thread. Let me know if you have any questions!

rich storm Apr 13, 2023, 9:23 AM

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Thanks, it's still a bit unclear to us. Even after reading the docs and already been in contact with the contact person at Stripe

finite geode Apr 13, 2023, 9:26 AM

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Which part is not clear? Can you clarify your question?

rich storm Apr 13, 2023, 9:28 AM

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We use Stripe Connect Standard. Currently only in the Netherlands. When going to other countries we are required to calculate tax on the application fee only. This tax is calculated towards merchants. We were pointed to https://stripe.com/docs/tax/set-up#integrate but this requires each account to set up tax since this seems to set tax on the complete transaction (including the transaction towards the merchant) instead of only on the fee.

Set up Stripe Tax

Enable Stripe Tax to automatically calculate and collect tax.

finite geode Apr 13, 2023, 9:38 AM

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ynnoj already answered that question:

With direct charges, the platform would need to manually calculate tax and increment the application_fee accordingly

rich storm Apr 13, 2023, 9:43 AM

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but then the tax will also be calculated on the total amount charged to the customer ?

#Jasperste