emng_code

[thin hamlet]

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[warm dust]

Those APIs are for incorporating Tax to custom payment flow. With Subscription, you have native support for Stripe Tax: https://docs.stripe.com/tax/subscriptions

[daring pilot]

with this call

const subscription = await stripe.subscriptions.create({
  automatic_tax: {
    enabled: true,
  },
  customer: '{{CUSTOMER_ID}}',
  items: [
    {
      price: '{{PRICE_ID}}',
    },
  ],
  payment_settings: {
    save_default_payment_method: 'on_subscription',
  },
  expand: ['latest_invoice.payment_intent'],
});

how is the tax determined? Is it by the address associated with the customer?

This is for a connect account integration, so I"m collecting payments on someone elses behalf

[knotty yoke]

Hi @daring pilot I'm taking over this thread

https://docs.stripe.com/tax/calculating tax calculation is complicated, you can find out more here

[daring pilot]

It seems like it uses the info attached to the customer object, is that correct?

[knotty yoke]

The location of the seller
The location of the customer
The type of the product sold
Whether the transaction involves a reverse charge
The status of the customer (for example, whether they’re a VAT-registered business, private person or an exempt organization)```

[daring pilot]

basically, I don't have any address information attached to my customers. But I am collecting a billing address during checkout. What' I'm doing is something like this

1. create payment method on the client and pass the payment method id to my server
2. create a subscription and set the payment method id as the default. Also, enable automatic_tax.

This transaction is me collecting payments from an enduser on behalf of a seller on the platform. Can you fill in the gaps on how to ensure I'm properly collecting taxes? Do I need to attach the billing address to the customer? Can I somehow pass the address in when I'm creating the subscription?

[knotty yoke]

Before creating a subscription, you should call the update Customer API to set the address https://docs.stripe.com/api/customers/update#update_customer-address

[daring pilot]

ok, thanks!

what happens if the customer does not have an address associated with them?

[knotty yoke]

Then Stripe Tax won't be able to calculate the tax correctly.