stealth-customer-tax | Stripe Developers | Page 1

fading tideBOT Jun 6, 2023, 5:13 PM

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fathom tapir Jun 6, 2023, 5:14 PM

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Hey @pearl orbit! What's your exact question? Please note that this Discord server is focused on helping developers with their own code and we can't help with account support questions

pearl orbit Jun 6, 2023, 5:14 PM

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So... I am testing new automatic tax feature and it does not work correctly.

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Here is my invoice: in_1NG3IwGpJlO3RAQZrhlpxYuc, and here is a customer: cus_O278WAFglkUcq1

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Customer has invalid VAT number, and yet invoice was created with "Tax to be paid on reverse charge basis".

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That should not happen. If VAT is invalid, tax should be always applied. There is no valid case where tax can be voided without having a correct VAT number.

fathom tapir Jun 6, 2023, 5:16 PM

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stealth-customer-tax

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Is this your own expectations or are you saying that's what our docs say?

pearl orbit Jun 6, 2023, 5:17 PM

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My expectations. That is, that's how it should be according to the law

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Invalid VAT = tax is always applied

glass wraith Jun 6, 2023, 5:18 PM

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👋 hopping in here - give me a mi nute to catch up

pearl orbit Jun 6, 2023, 5:18 PM

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To add some details. I created customer with valid VAT at first. And then I changed it manually to invalid in Stripe dashboard. However, Stripe ignores new change to VAT and keeps invoicing as if a customer has a valid vat.

glass wraith Jun 6, 2023, 5:23 PM

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gotcha - give me a few minmutes to dig in

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So I did some digging - apparently categorizing something as reverse charge doesn't actually require the presence of a valid Tax ID. It just checks for prescense, not validity

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https://stripe.com/docs/tax/zero-tax#reverse-charge
Stripe Tax automatically applies the right logic depending on the presence of a tax ID and the jurisdictions involved in the transaction.

pearl orbit Jun 6, 2023, 5:39 PM

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I see. Is there a switch/setting to turn such behavior off? It makes no sense to apply VAT if it's invalid.

glass wraith Jun 6, 2023, 5:43 PM

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There's no setting to turn this behavior off

pearl orbit Jun 6, 2023, 5:46 PM

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Are there plans to add it in the future?

glass wraith Jun 6, 2023, 5:47 PM

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As far as I know of there aren't any plans

pearl orbit Jun 6, 2023, 5:48 PM

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I see. Well, that makes automatic tax service quite useless, if we have to do manual checks just like we used to do until now.

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At least for EU. I can't speak for other regions

glass wraith Jun 6, 2023, 5:52 PM

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Yeah that's fair - I expect others in the EU who are using Stripe Tax are making sure the Tax ID is valid before continuing on with subscription or invoice creation, but if that's not something you want to account for then Stripe Tax isn't as helpful

pearl orbit Jun 6, 2023, 5:53 PM

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Thanks for help. Have a good day.

glass wraith Jun 6, 2023, 5:54 PM

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you too!

pearl orbit Jun 6, 2023, 6:06 PM

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One more question. Are fees charged on subscriptions where automatic_tax[enabled]=false? Taxes are enabled in settings, but I would like to avoid using this feature for domestic transactions and thus avoid fees.

glass wraith Jun 6, 2023, 6:07 PM

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You're talking about tax fees specifically, right? If you're specifically setting automatic_tax[enabled]=false then no, there shouldn't be any tax-related fees

pearl orbit Jun 6, 2023, 6:08 PM

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Yes, tax fees. 0.50c per calculation.

glass wraith Jun 6, 2023, 6:08 PM

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👍 yup, then what I said is accurate

#stealth-customer-tax