migs5439

[flat basalt]

Hi there

Can you clarify a bit further? You want to charge your customers for a Subscription where the "product" is that you are collecting taxes?

[grand cedar]

it's a b2b subscription

and we only want to collect taxes in UK

[flat basalt]

Oh you mean you want to just collect taxes for UK customers.

Do you already know up front whether they are a UK customer?

[grand cedar]

no, the idea would be based on shipping address

as billing address might not be their business address

[flat basalt]

Gotcha and how are you collecting shipping address?

[grand cedar]

via stripe embeded UI

meaning redirecting to stripe

[flat basalt]

Ah okay yeah then you can't really do this. You would have to know their country before you create your Checkout Session if you are using Stripe Checkout

[grand cedar]

and showing shipping address

hmm I thought this would be a pretty common use case

[flat basalt]

Yeah if you only want to collect tax on certain Subscriptions then you need to know about your customer ahead of creating the Checkout Session if you are going to use Stripe Checkout

It is a common use-case... just harder to handle when using Checkout. You can easily do this in a custom flow where you collect the information yourself

[grand cedar]

what do you mean by custom flow?

[flat basalt]

Using Payment Element and a deferred intent flow: https://docs.stripe.com/payments/accept-a-payment-deferred?platform=web&type=subscription

[grand cedar]

I see, not using elements right now

what can be achievable with the implementation I have?

[flat basalt]

Well you could use Automatic Tax and only enable collection in the UK

[grand cedar]

ok, how?

[flat basalt]

Hold on let me check if we prioritize Shipping Address for that

[grand cedar]

I think you do

[flat basalt]

Ah you are right (https://docs.stripe.com/tax/customer-locations?address-format=everywhere-else#address-hierarchy)

So actually this will work perfectly

All you do is enable Automatic Tax when creating your Checkout Session: https://docs.stripe.com/api/checkout/sessions/object#checkout_session_object-automatic_tax

And then you set up your registration in your Dashboard Tax Settings so that you are only collecting in the UK

https://docs.stripe.com/tax/registering discusses how to register

[grand cedar]

I've got this already

automatic_tax: {enabled: true},

[flat basalt]

Oh, and you aren't seeing taxes collected?

Have you set up a registration for the UK?

[grand cedar]

and I have registration in the UK only

I am seeing taxes collect for US for example

[flat basalt]

Alright well can you provide a Checkout Session ID that you tested with where you didn't see tax calculated in that case?

[grand cedar]

which should not be the case

cs_test_a1AsWMVOw6BbvN56MhDxRN56tRJ555w9TIqkS1pHcF021JiNlygm9Yarz8#fid1d2BpamRhQ2prcSc%2FJ0p1YGslVmRrdicpJ3ZwZ3Zmd2x1cWxqa1BrbHRwYGtgdnZAa2RnaWBhJz9jZGl2YCknZHVsTmB8Jz8ndW5acWB2cVowNEo3YFxgTGhHPH1cQkNfZkt0UjFtU1YzU3ZgaXBqVjZKSENwTmh2aUJPdmFxSX82aGNNX2ZqdUh3PVJmRldBczY0VDA2dHJJb0tQPXJAc0xfYkZqRnJsSzU1MEBhT0NvaHwnKSdjd2poVmB3c2B3Jz9xd3BgKSdpZHxqcHFRfHVgJz8ndmxrYmlgWmxxYGgnKSdga2RnaWBVaWRmYG1qaWFgd3YnP3F3cGB4JSUl

check this one

[flat basalt]

Looking

[flat basalt]

Hmm that one wasn't completed

[grand cedar]

in settings > tax settings, do I need to set something up?

let me complete one then

[flat basalt]

Yes you need to register

Go to https://dashboard.stripe.com/test/tax/registrations

And register for the UK and remove any US registrations you have

Hmm actually it looks like you already are registered for UK

And when I go to your Checkout Session I do see VAT applied when I enter a UK shipping address

So I think you are already good to go here

And you may just not be looking at things correctly post-Checkout to see the taxes

[grand cedar]

did you try US address

[flat basalt]

Hmm you are right when I enter a US address I see tax calculated which I don't believe should be happening. Give me another minute to look

[grand cedar]

just changed this setting

to automatic and enabled automatic calculation

[flat basalt]

Oh okay I think this is how VAT works

See: https://docs.stripe.com/tax/supported-countries/european-union#services

Whoops

That is EU

https://docs.stripe.com/tax/supported-countries/europe-middle-east-and-africa/united-kingdom is the correct doc

But I believe indicates that VAT is required on everything for you

[deep spire]

Hello! I'm taking over and catching up...

[grand cedar]

hmm

Generally, most transactions are taxable in the jurisdiction where your customer is. Stripe assumes the sale of most goods or services to be taxable unless specifically exempted.

[deep spire]

As far as I know a customer in the US isn't subject to VAT tax, but I am far from an expert on tax law. To get confirmation on what the actual tax behavior here should be you would need to talk to Stripe support: https://support.stripe.com/contact/email

[grand cedar]

I was told to only charge VAT when shipping address is based in the UK (and we are not selling any physical goods - using shipping only for tax purposes)

seems that we are on the same page here - I am not a tax expert too but I was told this from a tax expert person

so I am not looking for tax expert advice, just on how to only charge tax when shipping address is UK

[deep spire]

There are several factors used when we calculate tax, not just the shipping address: https://docs.stripe.com/tax/calculating

[grand cedar]

how can I only charge tax in UK then?

[deep spire]

That's something support would have to help you with, we're not tax experts here I'm afraid.

[grand cedar]

I'll reach out to support then, thanks!