Martin Ruano-taxes-payment

[devout robin]

Hi there 👋 do you know what tax code you're using for the product(s) that were part of the payment?

[worn rampart]

Hi Toby, It's Software as a service (SaaS)

[devout robin]

Gotcha! It looks like SaaS in Ohio may have some special tax behavior depending on whether it's business or personal use. I'd recommend writing into our support team with an explanation of your scenario as they're more knowledgable on the nuances of Stripe Tax than we are here.
https://support.stripe.com/?contact=true

[heavy prairie]

@worn rampart can you provide the PaymentIntent ID that I can take a peek at?

[worn rampart]

Sure @heavy prairie pi_3KgC6TKjX6VJa0zL1kceyMqp

[heavy prairie]

Pretty sure as @devout robin mentioned this is due to Ohio having a no-sales-tax on SAAS just like California. We note this here: https://stripe.com/docs/tax/zero-tax#exempt-or-zero-rated

[worn rampart]

Ok, We understand that SaaS is taxable for businesses in Ohio, and in this transaction cardholder is a company - but will go to support to review. Thank you

[heavy prairie]

@worn rampart just found an internal conversation about this and you are correct — tax only applies to businesses in Ohio and currently Stripe Tax doesn't differentiate and thus assesses a zero-value for Ohio. The current workaround is to apply a manual tax rate for Ohio business customers. Not great... but the gap has been flagged internally already.

[worn rampart]

Thanks for double checking @heavy prairie My only concerns is that there are 1,372 zip codes in Ohio - what is your recommendation for setting up so many rates linked to customer zip code?