Stripe Sales Tax Integration Guide
- Relay, Custom Apps
- Orders API
- Last Updated
- July 28, 2016
We put together this integration guide for Stripe merchants and developers looking to better understand TaxJar’s integrations for sales tax calculations and reporting.
You’ll learn how TaxJar provides integrations for both Stripe Relay and custom applications via SmartCalcs. For a primer on everything sales tax, read our sales tax guide for online sellers before getting started.
Getting Started with TaxJar
The first thing you’ll want to do is sign up for TaxJar and get a 30 day free trial. You’ll need a TaxJar account for a Stripe Tax URL or SmartCalcs API token. Immediately after you’ll want to set up the states where you have nexus:
Sales tax nexus occurs when your business has some kind of connection to a state. All states have a slightly different definition of nexus, but most of the time states consider a “physical presence” creates nexus.
TaxJar will use your nexus states to determine whether or not you need to collect sales tax for a given order and provide accurate sales tax calculations. To add a new state, go to Account > State Settings:
Sales Tax Calculations
If you’re using Stripe’s Orders API to manage your inventory and transactions, TaxJar provides a direct integration for calculating sales tax. This guide will show how you to set up sales tax calculations using the TaxJar integration within Stripe.
If you’re selling products through your own custom application or shopping cart, you can take advantage of our sales tax API. We wrote an in-depth SmartCalcs developer blog post for handling sales tax using Stripe subscriptions and payments.
Get Your Stripe Relay URL
Save the TaxJar URL under Stripe Tax Settings for the next step. We’ll use this URL to finish integrating your TaxJar account with Stripe.
Activate TaxJar in Stripe
Next log into your Stripe account and navigate to Orders Settings. Select Live mode under Settings and click Change tax… next to the Taxes setting:
Choose Provider under Type and TaxJar under Provider.
Copy and paste your TaxJar Stripe URL (starting with
https://taxjar:) into the TaxJar URL field. Click Update to complete the integration.
Make sure you verify your legal entity address under Stripe’s account settings page. Your address is used for determining the origin
from address. The destination
to address is the shipping address of the Relay order. If you’re curious, you can learn more about how Stripe programatically sends order details to TaxJar for calculating sales tax.
Now that we’ve set up calculations for Relay, we can begin importing orders into TaxJar for sales tax reporting and filing.
Sales Tax Reporting
We’re almost done setting up TaxJar with your Stripe account. If you’re interested in sales tax reporting and automated filing, proceed!
Keep in mind that we’ll only import orders through Stripe Relay. If you’re using Stripe for handling payments or subscriptions through a custom application, you can import orders using our sales tax API. Refer to our API Documentation for more information.
Setting Up Sales Tax Reporting
You’ll be redirected to a Stripe connection screen:
Click Sign in with Stripe to connect, sign in to Stripe, and we’ll automatically import your Stripe Relay orders into TaxJar. You only need to do this step once. Your Stripe account is now synced with TaxJar and will import new orders in real time.
Once you’re synced up to TaxJar, you’ll see your sales tax collected by city and county, across all states where you collect sales tax. These get updated every day. Connect the other platforms on which you sell, and we’ll update those daily, too.
Sales Tax Filing
All that’s left to do now is take all the information we have broken down for you, and fill in the blanks on your tax forms.
Of course, if you want to make your life even easier, you could just let us do all the filing for you. With AutoFile, we will automatically submit your tax forms for you when they are due.