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Adding options to disable automatic tax calculation and the subscription tax #11

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@jawood1 jawood1 commented Jan 11, 2023

This commit adds additional options to allow users to disable stripe from automatically calculating tax upon creation of a checkout session, along with also giving an option to bypass the default subscription tax which is currently added.

@mattbrailsford
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Looks good. The only thing I'm unclear on is the use case of disabled calculated tax whilst still having AutomaticTax set to true? Is it the case that if you want automatic tax disabled, it disables it in both locations? (ie, should this be 1 setting)

Can you explain when the different combinations of those settings would be necesarry?

@jawood1
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jawood1 commented Jan 12, 2023

Hi Matt,

Good question, what I realised when working on the code that even with automatic tax rates disabled the recurring subscription products would still have a tax rate added because of the "subscription tax" being created and applied to the product. Because of this I had to add an option to allow users to specifically disable the "subscription tax".

Though for my scenario I only ended up needing the subscription tax to be disabled as the stripe products where set as non-taxable. I thought I'd leave in the option to allow the users to disable the automatic tax rates as it stops "stripes tax" from being automatically being applied for stripe products. (this may need better explaining in the description for the toggle).

The purpose of this is explained when I reached out to stripe:

"Stripe tax is calculated based on the information of the customer, not Stripe user. It's calculated automatically using the customer's location:

https://stripe.com/docs/tax/customer-locations
https://stripe.com/docs/tax/supported-use-cases

Stripe tax will still be calculated automatically based on the customer's location. The business type has nothing to do with the automatic calculation.

Now, if you don't want taxes to be automatically calculated and collected (i.e. your business is a charity), then you should turn off Stripe tax.

To do this via the dashboard, you'll need to ensure that you have toggled off 'Calculate Tax Automatically' in any of the respective invoices or subscriptions. If you are using the API, then you will need to make sure that you pass automatic_tax: { enabled: false } when creating a checkout session, invoice, or subscription.

Once you have ensured that Automatic Tax is toggled to be off on the relevant charge, we won't calculate the tax for you and there will be no charge for the Stripe Tax product.

As long as Stripe tax is turned off, you'll be good to go, no taxes will be calculated and collected automatically anymore."

Perhaps the "automatic_tax" would be better as an order property than can be applied rather than being a blanket toggle for a store?

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