How to Tax Stripe Payments in WordPress

In this article, we focus on demonstrating how the WordPress hit the nail on the head Stripe Payments to collect taxes and fees, covering all the most common scenarios.

Collecting subscription, service and single product taxes and fees (WP Simple Pay)

If selling subscriptions, services or single products on your website, then the easiest way to make money is to create a simple payment form to collect taxes.

recommended WP Simple PayIt offers a wide range of pre-defined payment templates, an intuitive form builder, and complete anti-spam protection.

While testing the plugin, we found its fixed and automatic tax rate features to be handy for tax collection.fixed rateThe option to set the tax rate manually is good for use in a region with stable tax rules.

On the other hand.Automatic tax ratesThe function automatically calculates and applies the correct tax rate based on the customer's location, saving time and reducing the risk of error.

First, install and activate WP Simple Pay pluginThe

take note of: WP Simple Pay offers a free version, to use the tax collection feature, you need to use the Professional (Pro)The

Enabling the WP Simple Pay plugin and setting up tax collection

1. Activation Plugin
After activating the plugin, a setup wizard will pop up on the screen. From here, click on the "Let's Get Started" button to start the setup.

2. Enter the license key
Next, enter the license key for the plugin. The license key can be found in the WP Simple Pay website to get this information in your account. After entering the license key, click "Activate and Continue" Button.

3. Connecting Stripe Accounts
Then the Stripe Accounts and WP Simple Pay Connections.

Attention:The plugin will not work properly unless a new or existing Stripe account is connected. Click "Connect with Stripe" button and log in to your account.

4. Configuring Email Notifications
After successfully connecting to Stripe, the Setup Wizard will ask to configure email. Options can be enabled to receive email notifications for payment receipts, invoices that are about to expire, and payment notifications. Enter the e-mail address to receive these e-mails, and click "Save and Continue" Button.

5. Creating Payment Forms

After completing the above steps, from the WordPress dashboard go to the WP Simple Pay " Payment Forms page, click "Create Your Payment Form" Button.

entry "Select a Template" screen, select a suitable template, such as "Payment Form" Template.

6. Customized Payment Forms
After selecting the template, WP Simple Pay's form builder will launch, allowing you to add a title and description to the form, and then select a form type of "On-site payment form"The

7. Adding form fields
switch to "Form Fields" tab, click the drop-down menu to add a new field. Once added, click on the newly added field to expand the settings and customize as needed. Fields can be dragged and dropped to rearrange them. Collect customer information as needed, e.g. to display tax rates based on customer location, add an address field.

8. Setting the price to pay
After completing the field setup, go to "Payment" tab to enter the price of the product. The price can also be entered by clicking on the "Add Price" button to add multiple products. If you plan to sell subscription services, select "Subscription" option and add different subscription tiers.

9. Select Payment Method
exist "Payment Methods" In the section, there are options for accepting Stripe payments such as ACH Direct Debit, Card Pay, Klarna, Affirm, Cash App and Bancontact.

10. Setting up tax collection
exist "Tax Collection" In the section, select the desired tax collection method. Below, it will be explained how to add fixed and automatic tax rates to the payment form.

Method 1: Add a fixed tax rate to Stripe payments (sold in one region)

In this section, we explain how to collect tax on sales made only in one region. This is a better option if the product is sold and shipped only within a small region and the tax rate is uniform in that region, such as a state or province.

The tax rate for the product needs to be defined manually.

1. Open the "Payments" tab in Settings
First, open the WP Simple Pay settings in the "Payment." tag, and then in the Tax collection（Select from the Tax Collection drop-down menu. "Fixed rate" Options.

2. Saving drafts
After making your selection, click "Save Draft" button to save the draft form.

3. Enabling global tax rates
Next, travel to WP Simple Pay " Settings " General page, switch to the "Tax rate" Tags. Tick "Global tax rate" option next to the "Enable" box, which will show some new settings. On this page, click the "Add Rate" Button to add tax rate.

4. Add tax rate
In the pop-up window, you can add a name and tax rate to the product or service. Then, you need to select the tax calculation method:

• Taxes included(Inclusive Tax): Taxes are automatically included in the total price of the item.
• Taxes not included(Exclusive Tax): Customers can see a detailed breakdown of the total cost of the purchase, including the base price and separately listed sales tax.

Suggested choices Taxes not included, to avoid customers feeling that prices are being over marked.

5. Save Settings
After selecting the tax rate calculation method, click "Add Tax Rate" button and the window will close automatically. Then, click the "Save Changes" button to save the settings.

6. Create a customized payment page
Open the form again and go to "Payment Page" section, check the box in the left column "Enable a dedicated payment page" option to create a custom payment form page. Fixed links, color schemes, images and footer text can be added to the form.

7. Posting Forms
When you are done customizing, click "Publish" button to save the settings.

8. Adding a payment form to an existing page
If you want to add this form to an existing page, click the "Publish" After that, go back to the WordPress dashboard, open an existing page and click the "Add Block" Button.

9. Add WP Simple Pay block
In the pop-up block menu, find and add the WP Simple Pay Block, select the form you just created from the drop-down menu.

10. Save Changes
strike (on the keyboard) "Update" maybe "Publish" button to save the changes.

Method 2: Add automatic tax rates to Stripe payments (sold in multiple territories)

This is more suitable if you wish to automatically configure tax rates based on the location of the customer. This is more useful if the product is sold in multiple countries and regions.

1. Select automatic tax rate calculation
exist WP Simple Pay The form builder in the "Tax collection" In the drop-down menu, select "Automatically calculates tax rates based on location" Options.

2. Activate Stripe Automatic Tax Collection
Once the option is selected, you need to go to the Stripe Account Dashboard to activate automatic tax collection. Here, it is possible to monitor whether the tax thresholds have been reached in the different regions where the website business is located. Registrations can be added to these regions and tax collection can begin.

take note of: Remember to confirm the starting address and select the default tax category to ensure that the tax rate is calculated accurately.

3. Configuring Tax Settings in the Stripe Dashboard
After activating the tax settings in the Stripe dashboard, return to the WordPress dashboard and you'll see that with this option selected, theTax collection Some new settings have appeared in the section.

4. Select Tax Class
exist "Tax category" The drop down menu selects the tax category of the product or service being sold. For example, if you are selling skin care products, you can select that category.

5. Choosing a Tax Calculation
Next, choose whether to display Taxes included nevertheless Taxes not includedThe

• if you choose Taxes includedIf you do not want to pay the tax, then the tax will be automatically included in the total price of the product.
• if you choose Taxes not includedThe total price shows the base price of the item with a line to show the sales tax. Total Price displays the base price of the item with a line for sales tax.

6. Customize Payment Page
After completing the setup, go to "Payment Page" section. Check the "Enable customized payment pages" option, the plugin generates a custom payment page. This page can be customized as needed.

7. Save settings and publish
Once the settings are complete, click "Publish" button to save the changes. Then visit the website to view the payment form with automatic tax rate calculation.

8. Adding a payment form to an existing page
If you don't want the plugin to generate a brand new payment page, after configuring the tax settings, click the "Publish". Then, byBlock EditorOpen an existing page and select the menu WP Simple Pay Block. Select the form you just created from the drop-down menu.

9. Updating or publishing a page
strike (on the keyboard) "Update" maybe "Publish" button to save the changes.

Charging taxes on physical products (WooCommerce)

If running a website that sells multiple physical products, payment forms may not be applicable. More e-commerce features and tools are needed.

In this case, it is recommended to use WooCommerce. This free e-commerce plugin makes it easy to sell physical products, accept payments through Stripe, and collect associated taxes.

Getting Started Setting Up WooCommerce Tax Collections

1. Installation and activation of the WooCommerce plug-in
First, install and activate WooCommerce PluginThe

2. Enable Tax Function
After activating the plugin, go to WooCommerce " Settings " General page, scroll down to the "Enabling Taxation" Part.

tick "Enabling Taxation" option and click "Save changes" Button.

3. Configuring the tax display
Once the setup is complete, the top menu will show a "Taxes." Tab. On this page, you can choose how to display the tax:

• Taxes not included(Exclusive Tax): Taxes will be shown separately on the checkout page and not included in the product price.Taxes included(Inclusive Tax): The price of the product is inclusive of tax.

Suggested choices Taxes not includedThis way the client can clearly see the amount of tax paid.

4. Setting up the tax calculation

To select the basis for tax calculation. Click on the "Based on" drop-down menu and select an option:

• According to the customer's delivery address: Applies when goods are sent to different regions with different tax rates in each region.
• Based on the customer's billing address: If you want to calculate the tax based on the billing address entered by the customer.
• Use the base location of the store: This is the easiest way to set up if you only want to apply the tax rate of the store's location.

5. Configuration of transportation taxes and fees
exist "Transportation tax category" section, you can choose how WooCommerce calculates taxes for shipping:

• Transportation tax class based on shopping cart items: Shipping charges will be calculated based on the tax category of the item.
• standard tax bracket: Freight charges will be calculated at the standard rate set.

6. Setting the tax rounding method
Suggested checkbox "Rounding of taxes and fees at the subtotal level, instead of rounding each line separately" Options. This way, taxes will be rounded up based on the subtotal for the entire order, rather than each line of merchandise individually.

7. Configure price display options
Optionally, you can choose to show the price including taxes and fees or show the price excluding taxes and fees in the store, cart and checkout pages for added transparency.

8. Show how taxes and fees are totaled
exist "Show tax totals" Partially, optional:

• merged display: All applicable taxes and fees will be consolidated into a single tax total for simplified presentation.
• itemize: Each tax is listed separately so that clients can clearly see the details of each tax item.

9. Add tax rate
go into "Standard tax rate" page, click "Insert line" Button. In the pop-up page, you can add information such as country code, state code, zip code, city name and tax rate. If you only want to charge tax based on the location of the store, you only need to add one line. You can also set a name for each tax rate to make it easier to differentiate.

10. Save settings and view results
Once the settings are complete, click "Save changes" Button.

Now, visit the WooCommerce store and check the tax display on the checkout page. Depending on the settings, taxes may show up on product pages and cart pages as well.

Collecting taxes and fees for digital products (Easy Digital Downloads)

If you want to pass the Stripe Taxes are collected on the sale of digital products, then Easy Digital Downloads (EDD) It's a good choice.

Designed specifically for selling digital products, this plugin provides seamless tax collection functionality, including for Stripe Tax management for transactions. It handles everything from setting tax rates to generating reports, making tax management easier for stores.

We sell plug-ins and software with EDD, so we know first-hand how easy it is to collect Stripe Pay and manage taxes and fees.

Setting up the Easy Digital Downloads plug-in

1. Install and activate the EDD plug-in
First, install and activate Easy Digital Downloads Plug-ins.

take note of: EDD offers a free plan, but upgrading to the Professional (Pro) After that, you will get more features such as advanced reporting, email marketing integration, content restriction and more.

2. Setting up the store and connecting to Stripe
After activating the plugin, you need to set up your website, add products, and place the Stripe Connect with the plug-in.

3. Enabling Tax Functions
In the WordPress backend, go to Downloads " Settings " Taxation page, check the "Enabling Taxation" Options.

4. Choose how taxes are displayed
Selecting the desired tax is Taxes included nevertheless Taxes not includedThe

• if you choose "Yes, I will enter the price including tax.", then the price entered in the product data is the total amount paid by the customer (including tax).

• if you choose "No.", then the price entered on the product edit page will not include taxes, which will be calculated separately at checkout.

5. Show tax rate
Suggested checkbox "Show tax rate on price" option so that customers can see the amount of tax they need to pay under the buy button.

6. Choose how taxes are displayed
Next, decide how the price will be displayed on the checkout page:

• if you choose Show price including taxThe total price that the customer sees then already includes taxes and fees.
• if you choose Show prices excluding taxesThe price shown is the amount of the item only, tax will be shown separately at checkout.

7. Save Settings
After completing the above settings, click "Save changes" Button.

8. Add tax rate
Switch to "Tax rate" section, you can add tax rates to i specific country or state/province. Select a country/province and add a tax rate for it, then click the "Adding tax rates" Button. Tax rates can be added as many times as needed.

9. Save and check
When you're done, click "Save changes" Button.

Now, visit the Digital Products website to check out how to create a new product for the Stripe Payment to collect taxes.