#mounirmtl
1 messages · Page 1 of 1 (latest)
Hello again! Yes, with destination charges you can do more or less whatever you want in terms of what the breakdown is between your platform and the connected account.
The money flow on the doc says that the stripe fees are taken from the platform account.
I wonder if it's possible to tell stripe to take it from the connected account instead
We don't know what the stripe fees are until the payment has gone through and we need to to tell stripe what our application fee is before processing the payment
You might want to consider separate charges and transfers: https://stripe.com/docs/connect/separate-charges-and-transfers
Does that look like a better path forward for you?
No problem, was about to close this thread though, so good timing! 🙂
How does the OnBehalfOf parameter in the payment intent used for in that case?
It basically works the same way. We have details here: https://stripe.com/docs/connect/separate-charges-and-transfers#on-behalf-of
I read the documentation but since we're the one responsible for making the transfer anyway, I'm not what the difference is.
Is it just about who's responsible for collecting and remitting the taxes?
It's about several things, mainly who the business of record is.
what does business of record is mean?
Hi, stepping in and catching up.
Thanks
In this context, business of record means that to your end customer they would see your Connected Account as who they are getting goods from
We details this out here, https://stripe.com/docs/connect/separate-charges-and-transfers#on-behalf-of with additional bullet points.
How does this impact tax calculation?
For example we currently set the stripe account ID in the header when we perform the tax calculation. Is there any impact when doing that with separate charges and transfers?
Also will the merchant be able to see the fees we take in their report or should we keep track of the fees ourselves?
Hmm, without explicit examples I'm unable to speak to the tax calculation portion. As far as how it all works, it should not be any different. With on_behalf_of, it's important to note that the fee structure from your Connected Account would be used. They won't see the fee amount, they can only see what you transferred to them. You should test all this using out test API key, https://stripe.com/docs/keys it becomes much clearer as you test.
An explicit example is we charge a buyer $100.
We create a payment intent with separate charges and transfers and on_behalf_of.
We also calculate the axes using the tax calculation api and use the connected account id in the header of the stripe calculation.
We use the total amount calculated as the amount of the payment intent.
We create a tax transaction from the calculation.
Is it the correct approach?
We'd like our connected accounts to see a correct report of the taxes they owe
And we'd like our accountant to also have a correct report of the taxes we owe
That sounds right that you pass in the tax calculation when creating the payment
I can't speak to tax reporting. Our support team will be able to assist you better than I can: https://support.stripe.com/contact on this topic.
Thanks