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Configure Avalara AvaTax for Stripe Invoicing

This article applies to:Connector for Stripe Invoicing

After you activate AvaTax and set up your company profile, install and configure the connector 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.

Configure AvaTax for Stripe Invoicing

To configure AvaTax for Stripe Invoicing:

  1. Go to the AvaTax for Stripe 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 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?
    • Yes: If the selling price of your product is inclusive of tax, select Yes.
      AvaTax will separate the product price and the applicable tax to display on the invoice.
    • No: If the selling price of your product is exclusive of tax, select No.
      AvaTax will calculate the sales tax on the product price and will display the same on the invoice.

    Exclude zero value transactions for tax calculation?
    • Yes: If you select Yes, zero-value transactions will not be sent to AvaTax.
    • No:  If you select No, all transactions will be sent to AvaTax.
    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.
    Validate Address
    • If you do not want this feature, leave the check box clear.
    • If you want to avail this feature, select the check box and then click the Validate button.
      ValidateAddress.png
      The Not Attempted text next to the Validate button changes to Success followed by the validation timestamp.
    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 exit.

A confirmation message appears at the top of the page stating that configuration settings are saved successfully.

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