Install and configure the Stripe Tax Extension
Use the Stripe Tax Extension for WooCommerce to automatically calculate sales tax, VAT, and GST.
Use the Stripe Tax Extension for WooCommerce to automatically calculate sales tax, VAT, and GST for all of your transactions. After you install the Stripe Tax Extension for WooCommerce, you can connect it to your Stripe account and configure your tax settings.
If you previously configured these tax settings in the Stripe Dashboard, the values populate automatically in the Stripe Tax extension.
If your menu varies from the following steps, refer to the WordPress instructions.
Connect your Stripe account
- Install the WooCommerce Tax Stripe App on your Stripe account and click View API keys and copy the restricted key. You can install and test the app on a sandbox before you deploy it.
- On your WooCommerce back office, navigate to WooCommerce > Settings and select the Stripe Tax tab.
- Choose the type of access: Live mode or Sandbox mode .
- Enter the Restricted key from the Stripe App into the Secret key .
Click Test connection to verify that your key is valid and entered correctly.
Install the extension
- On the Stripe Tax for WooCommerce product page, click Add to store .
- Complete the checkout form, then click Place free order .
- After completing your order, click Add to store .
- On the Add your store page, enter the URL of the store you want to add the extension to, then click Add to store .
- After you receive confirmation of installation, you can configure the extension.
Configure your sales tax settings
The following configuration should be done in your WooCommerce back office:
- In the Stripe Tax tab, under Configure your sales tax settings , you can choose:
- The default product tax code to use in the shop.
- The product tax code to apply to all taxable fees.
- In the Tax tab, decide if the prices you set for your products are inclusive or exclusive of tax.
Set your business address in your Stripe Dashboard.
Manage tax registrations
Tax isn’t applied until you add registrations for jurisdictions where you need to collect tax. Our monitoring tool can help you understand where you might be registered or need to register.
If you’re already registered in certain jurisdictions and want to start collecting tax immediately, you can add those registrations to your configuration. You can only add tax registrations for supported countries and registration types. Some jurisdictions might require additional information.
Add tax registration
On the Stripe Tax tab, under Tax registrations, click Add new. Choose the jurisdiction from the dropdown, then click Save changes.
Delete tax registration
To delete a registration, hover over the registration, then click End immediately. To delete multiple registrations, select them from the list, then click End immediately from the Bulk actions dropdown.
Optional Configure product tax codes and customer tax settings
Collect taxes
To start collecting taxes:
- On the WooCommerce > General tab, select Enable tax rates and calculations, then click Save changes. This setting enables rate configuration and tax calculation during the checkout process.
- On the WooCommerce > Stripe Tax tab, select Enable Stripe Tax, then click Save changes. This setting enables automatic tax calculation and collection on all transactions.
After selecting a product from your WooCommerce store, you can enter an address on the Checkout page to automatically calculate tax based on the address. Test the tax behavior using the addresses where you registered, as well as the store address.
Certain product tax codes, such as most services, are taxed at origin (your head office address). Scenarios also exist where zero tax is calculated.
View tax reports
After you start collecting taxes, the Stripe Tax extension sends the transactions to Stripe Tax. You can then access tax reports and exports in the Stripe Dashboard. Learn more about the types of tax reports available in Stripe Tax.