How to set up Stripe Tax on your own account
You are the merchant, so sales tax on your sales is yours to handle. Checkout collects it through Stripe Tax once you turn Stripe Tax on in your own Stripe account and add your registrations. Until you do, buyers are charged no tax. This page covers what to set up and what happens in between.
Turn it on
- Open your Stripe dashboard. The Open Stripe dashboard link at the top of your Revenue page takes you there.
- Find Tax in the product menu and press Get started.
- Add your head office address, the business address Stripe should treat as yours for tax.
- Add your registrations, one for each state or country where you are registered to collect tax. Stripe asks for the place, the type of registration and the date it starts.
You don't need to do anything in ProvenSkills. Each time a buyer opens checkout, we check whether Stripe Tax is active on your account and switch tax on for that checkout if it is. We keep that answer for about five minutes, so a change in Stripe can take that long to reach checkout.
What happens before you register
Nothing is collected. Stripe Tax only charges tax in a place where you have added a registration, so a buyer in a state you haven't added pays the price on your pricing card and no more. A new Stripe account starts with Stripe Tax off, which means every checkout runs untaxed until you finish the steps above.
Where you need to register depends on where your buyers are and how much you sell to them. Your accountant can tell you, and it is worth asking before your first paid sale.
Who files and pays
You do. Tax collected sits on your Stripe account, and you file and remit it. Our fee is 10% of the payment before tax, so tax never changes what we take. Income tax on what you earn is yours too. Section 5 of the seller terms covers all of this.
What buyers see
Once a registration is live, the tax shows as its own line on the payment page, added to the price you set. A buyer in a place where you aren't registered sees no tax line.
Where to go next
If you haven't connected your Stripe account yet, start with how to connect your Stripe account. To see what a payment looks like after our fee, the worked example is on the pricing page. Your packs stay listed on the marketplace either way.