JDPT-VAT-calculation | Stripe Developers | Page 1

sharp badger Mar 11, 2022, 4:18 PM

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Hello 👋
Juggling between a few threads at the moment
Give me a few to catch up please 🙂

pseudo solstice Mar 11, 2022, 4:19 PM

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Sure no problem!

sharp badger Mar 11, 2022, 4:23 PM

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Hey there
Can you give me the invoice ID for this?

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@pseudo solstice

pseudo solstice Mar 11, 2022, 4:25 PM

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Yeah, I'm trying to figure out whether it's to do with calculating VAT from each line item and adding then rounding rather than using the subtotal, which would make sense

sharp badger Mar 11, 2022, 4:25 PM

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yup that could be it

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still happy to confirm it if you have an invoice ID handy

pseudo solstice Mar 11, 2022, 4:27 PM

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in_1Kah6XIAJYtOguPzdk3T0bUB

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Thanks

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Is there anywhere that documents exactly the process Stripe uses to calculate the VAT?

sharp badger Mar 11, 2022, 4:32 PM

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Seems like we calculate tax rate per line item
https://stripe.com/docs/billing/taxes/tax-rates#rounding

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still, I've reached out to a colleague of mine who is better at taxes than me 😅

pseudo solstice Mar 11, 2022, 5:06 PM

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Great, thanks for the help! Would make sense since the Stripe API accepts a tax rate per line item, problem is our platform doesn't calculate VAT this way, so there's a discrepancy between stripe and our platform

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There's no way to explicitly declare a tax amount anymore is there? That got deprecated if I remember correctly

earnest axle Mar 11, 2022, 5:09 PM

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Hi 👋 @sharp badger had to step away. But I believe that is correct due to the greater accuracy of taxing per item.

pseudo solstice Mar 11, 2022, 5:11 PM

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No problem, guess that'll require a rework our side to have more accurate tax calculations, thanks for the info

earnest axle Mar 11, 2022, 5:12 PM

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Yeah and just be aware of the rounding up like 41.13 *.2 = 8.226 -> rounds to 8.23

#JDPT-VAT-calculation