Tax Exemption for WooCommerce vs Stripe Tax – Sales tax automation for WooCommerce

Use Stripe Tax for WooCommerce to enable automatic sales tax calculation and apply the accurate tax rate for all of the transactions of your online store. Learn more how Stripe calculates sales tax, VAT, and GST. Know where to register: Understand where you need to collect taxes so that you can activate tax collection in over 50 countries and all US states. Stripe Tax for WooCommerce supports both country and VAT OSS registrations in Europe, and country and provincial registrations in Canada. Automate tax collection: Calculate and collect the correct amount of tax. Stripe Tax for WooCommerce supports sales tax collection on hundreds of products and services, and maintains updated tax rules and rates. Reconcile transactions: Stripe Tax for WooCommerce summarizes reports to match formatting requirements for each filing location so you can file and remit taxes on your own, with your accountant, or with a preferred partner. Stripe Tax pricing is usage-based. For Stripe Tax for WooCommerce pricing, see the API integration with Stripe Tax. Follow along below to learn how to install this connector and how to configure it. 1. Install the Stripe Tax for WooCommerce Install this plugin and make sure it’s activated. 2. Connect your Stripe account On your website’s dashboard, navigate to WooCommerce > Settings and select the Stripe Tax tab. In the latest version, you connect your account manually using API keys: You can generate your API key from the Woo Commerce Tax Stripe App Select Mode: Choose between Live mode for real transactions or toggle the switch if you are performing tests. Enter Secret Key: Copy your Secret Key from your Stripe account and paste it into the Secret key field. Note: If you are in Live mode, use your Live Secret Key. If you are testing, use your Test Secret Key. Test Connection: Click the Test connection button located next to the input field to verify that the key is valid. Save Changes: Once the connection is verified, scroll to the bottom of the page and click Save changes to finalize the setup. 3. Configure your sales tax settings Tax settings must now be configured directly on the Stripe Dashboard. On the Stripe Tax tab, under Configure your sales tax settings, complete the following: Choose your default product tax code, which allows Stripe to calculate the tax rate for categories of products. Choose your tax class for taxable fees. (Default is General – Services) Click Save changes. On the Tax tab, you can decide if the prices you set for your products are inclusive or exclusive of tax. 4. Manage tax registrations Sales tax calculation isn’t applied until you add registrations for jurisdictions where you need to collect tax. Our monitoring tool can help you understand where you might be registered or need to register. If you’re already registered in certain jurisdictions and want to start collecting tax immediately, you can add those registrations to your configuration. You can only add tax registrations for supported countries and registration types. Some jurisdictions might require additional information. Add tax registration On the Stripe Tax tab, under Tax registrations, click Add new. Choose the jurisdiction from the dropdown, then click Save changes. Delete tax registration To delete a registration, hover over the registration, then click End immediately. To delete multiple registrations, select them from the list, then click End immediately from the Bulk actions dropdown. 5. Configure product tax codes and customer tax settings (optional) You can configure tax codes for your products or tax settings for your customers. Product tax codes Stripe Tax can calculate the tax for each of your products based on the product tax code that you assign to it. If you don’t set a code per product, Stripe Tax uses the default product tax code that you selected during setup. To set a tax code per product: Go to Products and select a product from the list. On the Edit product page, in the Product data section, select a Stripe Tax – Product tax code for the product. Click Update to save your selection. Customer tax settings Stripe Tax can calculate the tax for each of your customers based on their tax status. To update a user’s taxability: Go to Users and select a user from the list. Under Stripe Tax Exemptions, select a Tax Status option for the user. Click Update user to save your selection. Learn more about how the customer’s tax status impacts sales tax calculation. 6. Collect taxes To start collecting taxes: On the WooCommerce > General tab, select Enable tax rates and calculations, then click Save changes. This setting enables rate configuration and sales tax calculation during the checkout process. On the WooCommerce > Stripe Tax tab, select Enable Stripe Tax, then click Save changes. This setting enables automatic sales tax calculation and collection on all transactions. 7. View tax reports After you start collecting taxes, this Stripe Tax connector sends the transactions to Stripe Tax. You can then access tax reports and exports in the Stripe Dashboard. Learn more about the types of tax reports available in Stripe Tax.

Let your customers declare that they are exempt from tax on WooCommerce checkout, provide the details to back it up, and have tax removed from their order automatically. This is useful if you have some customers that are eligible to be exempt from tax on your products, for example for the purpose of disability VAT exemption or charity VAT relief, or business customers supplying a VAT number. Getting Started Simply install the “Tax Exemption plugin for WooCommerce” plugin, and visit the “Tax Exemption” settings page under “WooCommerce” in the WordPress admin. Configure the plugin settings as required: Enable or disable the tax exemption feature. Select the tax class to use for the Tax / VAT exemption. Select the location on checkout to display the tax exemption fields. Show the tax exemption checkbox and fields on the cart page too, and choose where. Enable or disable removal of tax on shipping for exempt customers. Enable or disable the tax exemption fields on the “My Account” page. Choose which details to collect – the name and reason fields can each be shown, hidden, or made required. Collect a registration number (VAT number, charity number, ABN and more) and choose which types you accept. Get an email whenever a tax exempt order is placed. Customise the text/labels used throughout the plugin. Your customers will then be able to select the “I want to claim tax exemption” checkbox on the checkout page, and enter their tax exemption details. Tax will be removed from their order if this is checked and they have entered their details successfully. Where The Form Appears The tax exemption form works on the classic checkout, the WooCommerce block checkout, the cart page, and the “My Account” page, for both guests and logged in customers. You can also place it anywhere else on your site with the [tefw_exemption_form] shortcode. Managing Exempt Customers & Orders Exempt Customers – a searchable list of every customer claiming tax exemption, along with their details. Customers can be added and edited here directly. Exempt Orders – every order placed with tax exemption, filterable by date. If an order is marked as tax / VAT exempt, this will be shown on the admin order details page, where you can see the tax exempt details. An optional column on the orders list marks which orders were exempt. Each customer’s exemption details can also be viewed and edited from their WordPress user profile. Tax exemption details are included in WordPress personal data exports and erasure requests. PRO Version The PRO version offers several additional features including: Registration number verification (VAT, charity, ABN, GSTIN and more). Live lookups against the official registers – VIES, HMRC, the Australian Business Register and the Charity Commission. Automatic approval for customers whose number verifies. Consultation references recorded as proof that a number was checked. Re-check a customer’s stored number at any time. Option to show ex-tax prices to exempt customers across the whole store. Optional “inc/ex tax” price toggle for every visitor. Custom tax exemption form fields. Tax exemption certificate upload field. Tax exemption expiration date field. Automatic expiry reminder & expired notification emails. Customisable exemption request, approval and decline emails. Default validity period (auto-calculate expiration dates). Tax exemption city/state field. Tax exemption fields on registration form. Exemption status management for admins. Only allow exemption for approved users. Hide the tax exemption fields on checkout. Only remove tax from specific products. Only allow exemption for logged in users. Only allow exemption for selected user roles. Only allow exemption for selected countries. Only allow exemption for selected states/cities. Customize the tax class for each user. Export CSV files of exempt customers. Export CSV files of exempt orders. Integration with “AvaTax”. UPGRADE TO PRO