Stripe Tax
You can calculate and collect VAT, Sales Tax and GST using Stripe Tax and CheckoutJoy. This feature is available for all CheckoutJoy accounts and is included in the Pro plan.
Refer to the Stripe Tax documentation (opens in a new tab) for more information on how Stripe Tax works.
Please note - this only works with Stripe payments
You can only use Stripe Tax when processing payments with Stripe. Tax transactions are not recorded when accepting payments
with other payment processors. You should use CheckoutJoy Tax or set up a Quaderno integration if you are using a different payment processor.
How does it work?
When you enable Stripe Tax in your CheckoutJoy account, we will automatically calculate the tax amount for each product in your checkout. The tax amount is calculated based on the location of the customer, and the tax registrations that you've set up in your Stripe account.
How to enable Stripe Tax
Before you get started, you need to enable Stripe Tax in your Stripe account. You can check this link (opens in a new tab) for more information on how to set up Stripe Tax.
Once you have enabled Stripe Tax in your Stripe account, you can enable it in your CheckoutJoy account by following these steps:
- Go to the Settings > Payment Methods page in your CheckoutJoy account.
- Select Stripe as your payment processor.
- Click on the Enable Stripe Tax toggle to enable Stripe Tax for your account.
- Select whether taxes are calculated
InclusiveorExclusiveof the product price. - Click on the Save Changes button to save your changes.
Your checkouts will now include the tax amount calculated by Stripe Tax.
Collecting customer details
To calculate the tax amount, Stripe Tax requires the customer's location with as much detail as possible. This includes the customer's billing address and shipping address if applicable. You can collect this information by enabling the Billing Address form fields in your checkout settings.
By default the system will record the customer's IP address and use that to determine the location. However, this is not always accurate or sufficient for calculating tax. We recommend enabling the Billing Address form fields to ensure the tax amount is calculated correctly.