How to enable stripe tax in your course platform

To collect taxes from your students, you need to activate Stripe on your platform, and set up tax registration in your Stripe dashboard.

After setting up Stripe to receive payments from your students, you can also enable Stripe tax to be able to receive tax on every purchase made by your students.

To enable Stripe Tax, login to your platform => click Admin => Integrations => scroll down to Stripe Tax => and choose between the Inclusive and Exclusive tax behavior/tax calculation method.

Inclusive: Taxes are included in the course price, so if the course costs $100 and the tax is 20%, you are going to receive $80 and the rest, you will need to pay out as taxes.

Exclusive: Taxes are not included in the course price. Therefore, if the course price is $100 and the tax is 20%, you are going to receive $100, but you will need to charge $120 for the course and pay $20 in taxes to the corresponding tax jurisdiction.

Note: The tax will only be added to the checkout pages and invoices after you register in that particular jurisdiction. Also, your students will be prompted to enter an address for their tax to be calculated.

Afterward, you can decide to enable the Tax ID Collection button, if you want to sell your courses to businesses and have them add a tax ID to their invoices. Then, click Activate.

Tax ID Collection: When it is activated, the checkout shows and hides the tax ID collection form, depending on your student's location. If your student is in a location that is supported by tax ID collection, the checkout shows a checkbox that allows the student to indicate that they are purchasing as a business.

When your student checks the box, the checkout displays fields for them to enter their tax ID and legal entity name for their business.

Note: The Stripe on your platform and Stripe Tax registration in your Stripe dashboard need to be active before you can use Stripe Tax, else you will get an error message.