Tax Determination in Stripe
Galvix can automatically calculate and apply the correct sales tax to new invoices created in your Stripe account. To ensure accurate tax calculations, please confirm the following are properly set up in your Galvix account:
- State Registrations
- Tax Exemptions
- Product Tax Categories
How to Enable Tax Determination for Stripe?
To activate Galvix's tax determination on your Stripe integration:
- Go to Settings → Integrations in your Galvix account.
- Locate your Stripe integration from the list.
- Click the three-dot menu next to it and select Edit.
- Find the setting labeled "Use Galvix for Tax Determination" and toggle it On.
- Click Save to apply the changes.
Additional Steps for API-Generated Invoices
If you're creating invoices via Stripe's API, additional configurations are required to ensure Galvix can update tax amounts before the invoice is finalized.
One-Off Invoices
When using Stripe’s Create an Invoice API:
Set the 'automatically_finalizes_at' field to the 'current timestamp + 10 seconds'
This ensures the invoice is created in a draft state and finalized 10 seconds after that, giving Galvix time to add the correct tax before finalization.
Subscription Invoices
When using Stripe’s Create a Subscription or Update a Subscription API:
Set 'pay_immediately' field to 'false'
This creates the invoice in a draft state, which Stripe will automatically finalize within 1 hour. Galvix will calculate and apply the correct tax amount during this window.
Note: For renewal invoices on existing subscriptions, Stripe automatically generates them in the draft state. Galvix will apply tax to these invoices without requiring any changes from your side.
Need Help?
Once tax determination is enabled, and the above steps are followed for API-generated invoices, Galvix will automatically calculate and apply the appropriate taxes to all eligible Stripe invoices.
If you have any questions or need assistance, feel free to contact us at support@galvix.com.