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Avalara Help Center

Why are my subscription invoices in Stripe not calculating tax or posting to AvaTax?


You would like to know why your subscription invoices are not calculating tax or posting to AvaTax.




  • This issue is caused by the internal setting of Stripe that automatically pays on subscription invoices. 
  • This prevents AvaTax from making changes to the invoice, like applying a tax amount.
  • To resolve this issue the `pay_immediately=false` flag will need to be set by creating a custom code.
    • Contact Stripe support to have them enable "pay_immediately" option in your Stripe account.
  • You can also apply the "Charge" feature in the AvaTax Configuration.
    • This will mark the invoice as tax inclusive which does not require a change as the tax will be taken out of the total amount of the subscription.
    • Charges are always inclusive of tax. Charge cannot be tax exclusive.
    • 'Is Tax inclusive in the Invoice Amount'  option on AvaTax Setup page is only for Invoices.


This is only true for the first subscription invoice. The following periods have 1 hour between the time the invoice is created and paid which allows AvaTax to calculate tax.