Sales tax
The Sales tax page sets up Stripe Tax for a business, so the sales tax on invoices you send is worked out by Stripe from your client's address.
It has four parts. Tax settings holds your head office address and the kind of thing you mostly sell (Stripe's product tax code); Stripe can't calculate tax until both are filled in. Registrations lists the states where you're registered to collect sales tax; Stripe only charges tax in a state once you've added a registration for it. Register for me lets you ask for Stripe to register you in a state where you have no office, staff or inventory; requests are taken now and show 'Waiting on Stripe' until they're filed, and the state you're based in has to be registered with the state directly. Use Stripe Tax on invoices is the switch that makes sent invoices use Stripe's tax instead of the tax rate on each line. Only owners and admins of the business can change anything here; everyone else sees the status. QLife Money doesn't decide where you have to register. Ask your tax advisor.
How to
Finish your tax settings
- Open the business and click 'Sales tax'.
- Under Tax settings, enter your head office address and choose what you mostly sell.
- The yellow 'Setup isn't finished' notice goes away once Stripe has both.
Add a state you're already registered in
- Under Registrations, add the registration and pick the state.
- Stripe starts collecting tax there right away. It appears under 'Where you collect' as Collecting.
- To stop collecting in a state, end the registration in the same place. Ending it doesn't cancel your registration with the state.
Ask us to register you in a state
- Under Register for me, choose the state. Your home state isn't in the list.
- Optionally pick the date you want to start collecting and add a note, such as when you passed the state's sales threshold.
- Click 'Register for me'. The request shows 'Waiting on Stripe'. Registration usually takes about 30 days, or up to 60 from December to February, and some states charge a filing fee.
- While it's still waiting, you can click 'Withdraw' to cancel it.
Use Stripe Tax on invoices
- Finish your tax settings first; the switch stays off until they're complete.
- Turn on 'Use Stripe Tax on invoices'.
- Make sure each client has an address with a ZIP code. Sending an invoice to a client without one stops with a message asking for it.
- When you send an invoice, its tax, total and balance are replaced with Stripe's figures. An invoice that already has a payment recorded keeps the line rates.
Reference
- Collecting
- Stripe is charging sales tax in this state.
- Scheduled
- A registration that starts on a future date.
- Ended
- Stripe has stopped collecting in this state.
- Waiting on Stripe
- A Register-for-me request we've received but not yet filed. You can still withdraw it.
- Use Stripe Tax on invoices
- When on, sent invoices get their sales tax from Stripe, based on the client's address. When off, invoices use the tax rate on each line.
- Not collecting anywhere yet
- Your settings are done, but you haven't added a registration, so Stripe charges no sales tax.