Stripe Managed Payments and Stripe Automatic Tax

Your application supports two optional Stripe features for subscription checkout:

• Stripe Automatic Tax automatically calculates the applicable tax during checkout while you remain the Merchant of Record.

• Stripe Managed Payments allows Stripe to act as the Merchant of Record, handling payments, tax collection, and related compliance for supported subscriptions.

These features can be enabled independently. However, Stripe Managed Payments already includes tax handling, so enabling Stripe Automatic Tax separately is not required when using Managed Payments.

Stripe Automatic Tax

Use Stripe Automatic Tax if you want Stripe to calculate sales tax, VAT, or GST while your business remains the Merchant of Record.

Setup

1. Configure Stripe Tax in your Stripe Dashboard.

2. Enable Stripe Automatic Tax under Settings > Processors > Stripe in your application.

Stripe Managed Payments

Use Stripe Managed Payments if you want Stripe to act as the Merchant of Record for subscriptions.

When enabled, Stripe manages:

• Payment processing

• Tax calculation and collection

• Tax remittance (where applicable)

• Merchant compliance responsibilities

Setup

1. Configure Stripe Managed Payments in your Stripe Dashboard.

2. Create or update your products in the Stripe Product Catalog and ensure they are eligible for Managed Payments.

3. Create the recurring Stripe Prices for your subscription plans.

4. Copy each Stripe Price ID and update the corresponding Subscription Plan in your application.

5. Enable Stripe Managed Payments under Settings > Processors > Stripe.

Notes

• Both features require configuration in your Stripe Dashboard before they can be enabled in your application.

• When Stripe Managed Payments is enabled, Stripe Automatic Tax is not required because tax handling is included.

• If a subscription plan does not have a Managed Payments Price ID configured, checkout automatically falls back to the standard Stripe payment flow.