How to Set Up Stripe Tax on Your Platform | Exercise.com Knowledge Base

How to Set Up Stripe Tax on Your Platform

Posted by Support Team on February 3, 2025 — Updated on February 4, 2025

With Exercise.com’s business tools, you can monitor your tax obligations automatically while processing payments online or in person. Here’s a look at how our new tax automation capabilities can help you simplify your tax compliance process.

1. Contact your CSM to make sure this is a good fit for you!

If you already have flat rate taxes enabled on your platform, changing to Stripe Tax will impact your current tax setup.

2. Once you’re CSM has enabled Stripe Tax on your platform, Click to expand the Account tab on your left side menu.

Click the down arrow next to the Account tab on your left side menu to expand the menu options.

Click to expand the Account tab on your left side menu.

3. Click “Stripe” on the expanded menu.

Click the “Stripe” option on the expanded menu.

Click 'Stripe' on the expanded menu.

4. Click on the “Stripe Settings” link at the top of the page.

Click the “Stripe Settings” link at the top of the page to open the Tax setup page.

Click on the 'Stripe Settings' link at the top of the page.

5. Add your business address.

Click the “Add address” link to add your business address.

Add your business address.

6. Set your product tax code.

Click “Add product tax code” to setup the default tax code for what you’re offering on your platform.

Set your product tax code.

7. You’ll be able to edit this tax code later if you need to.

Consult a tax professional to make sure you have the correct tax code for your business. You can edit this selection later if you need to.

You'll be able to edit this tax code later if you need to.

8. Click “Add registration” to register for automatic tax collection wherever you need to.

Click “Add registration” and set up any locations where you want to automatically collect sales tax.

Click 'Add registration' to register for automatic tax collection wherever you need to.

9. You can set up registrations for each state where you have customers.

Any applicable sales tax will be collected automatically if a customer is purchasing from a location where you have an active tax registration.

You can set up registrations for each state where you have customers.

10. Stripe Tax will monitor for any tax obligations outside of areas where you registered.

Click “Add registration” and set up any locations where you want to automatically collect sales tax.

Stripe Tax will monitor for any tax obligations outside of areas where you registered.

11. Customers are prompted to enter their Address if it’s not already on file.

Once you’ve set up your tax information, your customers will be prompted to enter a valid address at checkout if they don’t already have one saved to their profile.

Customers are prompted to enter their Address if it's not already on file.

12. Sales tax is automatically applied based on the customer’s local requirements.

If your customer has local requirements for sales tax, and you have an active tax registration for their area, any required taxes will be applied at checkout automatically.

Sales tax is automatically applied based on the customer's local requirements.

With our automatic tax compliance, you’ll be able to confidently navigate in a complex business tax landscape.

FAQ:

How much does it cost to use Stripe Tax on my platform?

The cost for automatic tax calculation and collection is based on your usage. For one-time charges, you’ll be charged when a customer goes to complete the Checkout process and requires a sales tax calculation based on their location. Once the transaction goes through, you’ll be charged a small amount per transaction in cents if the transaction required sales tax.

For subscription charges, you’ll be charged a small percentage of the transaction amount for transactions that require sales tax.

Will Sales Tax nexus by state be calculated and then activate sales tax collection once nexus is reached?

You must register with the tax authority in a location to collect taxes there. In some countries and states you have to register before your first transaction, while others have a registration threshold (such as the number of sales or sales volume).

Stripe Tax alerts you to potential tax obligations (known as economic nexus in the US) when your business reaches 10,000 USD in yearly revenue. We send notifications after you hit a threshold in any location. Stripe sends tax threshold notifications by email. Click here for more information about tax threshold notifications.

Does Stripe Tax do the reporting and remittance of sales tax to each jurisdiction for which it is collected?

If you’re collecting taxes, you must report, file, and remit (transfer) the taxes collected in every location that you’re registered in. Make sure you understand and comply with obligations of each state or country and consult your tax advisor if you need help. Stripe Tax supports exporting your transactions in an itemized format to aid with tax reporting.

Stripe Tax doesn’t currently file or remit taxes on your behalf. Click here for more information on reporting, filing, and remitting.

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