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How do I charge tax on subscription invoice in Stripe?

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Overview

You are expecting to see tax applied to subscription invoices but it's not.   

Environment

Stripe Invoicing

Resolution

  • To ensure that the sales tax is calculated for subscriptions, set the "pay_immediately=false" flag while creating subscriptions. 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 Support to enable "pay_immediately" option in your Stripe account.