Stripe Managed Payments and Stripe Automatic Tax

Your application supports two optional Stripe features for handling taxes during 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 transactions.

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:

   • For subscriptions, under Settings > Processors > Stripe.

   • For products and support renewals, under the corresponding User Account > Settings > Processors > Stripe.

Stripe Managed Payments

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

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. For each product, create the appropriate Stripe Price:

   • Recurring prices for subscription plans.

   • One-time prices for products and support renewals.

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

5. Enable Stripe Managed Payments:

   • For subscriptions, under Settings > Processors > Stripe.

   • For products and support renewals, under the corresponding User Account > 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 does not need to be enabled for the same checkout because tax handling is already included.

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