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Install and Configure Avalara AvaTax for Stripe Invoicing

This article applies to:AvaTax for Stripe Invoicing

 

Sign in to Avalara AvaTax for Stripe Invoicing

To sign in to Avalara AvaTax for Stripe Invoicing:

  1. Go to AvaTax for Stripe, and click Connect with Stripe.
  2. Sign in with your Stripe account credentials, if you are not signed in already.
  3. On the Avalara AvaTax for Stripe sign-in page, click AvaTax Signin.
  4. On the Avalara Identity’s sign-in page, enter your Avatax credentials and then click Sign in.

Install Avalara AvaTax for Stripe Invoicing

The Avalara AvaTax for Stripe connector is available online, and you do not need to download it. To perform installation, simply connect the AvaTax connector to Stripe. Follow these procedures:

  • Create a company, if not created already.
  • Connect Avalara AvaTax to Stripe Invoicing.

Create a company

To establish a connection between Avalara AvaTax and Stripe, you need to have at least one company created in your AvaTax account.

To create a company:

  1. Go to the AvaTax Setup page. (This is the default page that appears after you sign in as a new user.)
  2. From the Select Company drop-down list, select Create New Company, and then click Link Company.
  3. Enter company profile details, and then click Setup Profile.
  4. Beside Webhook link for Stripe integration, copy the link.
  5. Go to your Stripe Invoicing dashboard, and then click the following text to switch to the environment you want to connect to AvaTax if you're not already there:
    • If View test data displays, you're in the production environment.
    • If Viewing test data displays, you're in the test environment.
  6. Go to API > Webhooks, and then, beside Endpoints Receiving Events from Your Account, click Add endpoint.
  7. Fill in the following fields:
    Field Action  
    URL to be called Paste in the webhook link you copied
    Filter event
    • To send the details of all event types to AvaTax, select Send All Event Types
    • To send details of only selected event types to AvaTax, select Select Types to Send, and then select types. We recommend at least the following:
      • Invoice.created
      • Invoice.updated
      • Customer.created
      • Customer.updated
      • Charge.refunded
      • Charge.succeeded
  8. Click the webhook link you pasted in, under Signing Secret click Click to reveal, and then copy the revealed signing secret.
  9. On the AvaTax for Stripe Invoicing site, on the Setup page, paste the signing secret into Webhook signing secret.

Connect Avalara AvaTax to Stripe Invoicing

Connect Avalara AvaTax to Stripe Invoicing. To do so, connect one or more companies created in your AvaTax account to your Stripe account.

To connect a company to Stripe Invoicing:

  1. Go to the AvaTax Setup page. (This is the default page that appears after you sign in as a new user.)
  2. From the Select Company drop-down list, select one company and click Link Company.
  3. On the Setup page, enter the origin address of your business for tax calculation.
  4. Click Save to establish the connection.

Configure Avalara AvaTax for Stripe Invoicing

After you activate AvaTax and set up your company profile, install and configure AvaTax for your business application. During configuration, customize your setup to fit your unique business needs for things like:

  • Tax calculation settings for various tax types
  • Exemption settings if you have exempt customers
  • Product taxability settings

Alter these settings when your business needs change.

If you want tax to display within Stripe Checkout, integrate with the Avalara API.

Before you begin

If you prefer not to use draft invoices in Stripe Invoicing, to make sure that the sales tax is calculated for subscriptions, set the "pay_immediately=false" flag. This prevents Stripe Invoicing from paying the invoice for some time after your subscription is created, and AvaTax for Stripe Invoicing can update the first recurring invoice within this time frame. Contact Stripe Invoicing Support to have them add your account with this argument to their allow list. Only accounts that are on the allow list can use this argument.

To configure Avalara AvaTax for Stripe Invoicing:

  1. Go to the Avalara AvaTax for Stripe's Setup page. (This is the default page that appears when you sign in as an existing user.)

    The Setup page displays the available information as saved in Avalara AvaTax.
  2. At the bottom of the Setup page, click Edit Configuration to make the desirable updates.
  3. Take the following actions in the given fields; a field followed by an asterisk sign (*) is mandatory.
    Field Action  
    Webhook signing secret  Enter the webhook signing secret.
    Company Code* Select the company whose information you want to use when calculating tax.
    Origin address details Enter the address to be used as your ship-in address when calculating sales tax.
    Do you sell tax-inclusive products?
    • If the prices on your invoice already include sales tax, select Yes. AvaTax calculates taxes as a portion of the price, not in addition to the price. The total on your invoice will be equal to the price.
    • If the prices on your invoice don't include sales tax, select No. AvaTax will add sales tax to the invoice. The total on your invoice will be equal to the price plus tax.
    Calculate tax on

    Select either or both options.

    • To calculate tax on charges, select Charge/Payment.
    • To calculate tax on invoices, select Invoice.
    Tax on Invoices

    Choose a type of invoice for calculating tax:

    • Recurring: Tax is applied on recurring invoices.
    • One-time: Tax is applied on normal invoices.
    AvaTax Integration Status Enable this to use AvaTax to calculate taxes.
    Tax label on Invoice* Enter text to display on the invoice tax line for AvaTax.
    Tax label on Charge Enter text to display on the charge description for AvaTax.
  4. Click Save Configuration to complete the configuration and exit.
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