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About Global Tax Compliance for Resold Products

This feature helps your agency manage tax collection and reporting for products and services you resell to your sub-accounts. It uses an integration with Stripe Tax to support tax handling for over 100 countries, including U.S. states, Canadian provinces, EU VAT, and various international VAT/GST regimes. You can configure tax collection for usage-based products, SaaS subscriptions, and marketplace apps.

Important Tax Responsibility Notice: This feature is designed to assist with tax collection and reporting. However, your agency is solely responsible for registering with tax authorities, verifying all tax calculations, and remitting the collected taxes to the correct government bodies. It is strongly recommended that you consult with a qualified tax advisor for compliance matters.

Prerequisites

Before you begin setup, ensure the following are in place:

Valid Sub-Account Billing Addresses: Every sub-account must have a complete and valid billing address on file, including a zip or postal code. Tax calculations depend on this information.
Connected Stripe Account: Your agency must have a Stripe connected account, as all tax operations use Stripe Tax.
Jurisdictions Registered in Stripe: You must first register for any tax jurisdictions (like a specific state or country) within your Stripe account. These registrations will then sync automatically into your CRM.
Review of Stripe Fees: Using the automatic tax calculation mode may incur additional per-transaction fees from Stripe. Please review your Stripe plan details.

How Tax Calculation Works

The system determines tax rates by evaluating several factors provided by Stripe Tax:

Your agency's business address and tax registrations.
The specific product or service being sold.
The billing address of the sub-account making the purchase.

Configuring Tax Collection Modes

For each tax jurisdiction you have registered, you can choose how to handle taxes:

Automatic: The system uses Stripe Tax to calculate, collect, and report taxes automatically on transactions within that jurisdiction.
Manual: You handle all tax calculation, collection, and reporting for that jurisdiction outside of the CRM. The system will not apply taxes automatically.

Setting Up Tax for Usage-Based Products

For products with usage-based billing (like phone minutes or SMS credits), you can choose when to apply tax:

On Wallet Recharge: Tax is calculated and collected at the moment a sub-account adds funds to their wallet.
On Monthly Usage: Tax is calculated and applied based on the sub-account's actual consumption at the end of each billing period.

Managing Taxable Products and Tax Codes

You can designate which products are taxable. For each taxable product, you can map it to a specific Stripe Tax Code. This code helps classify the product type (e.g., software-as-a-service, digital product) for accurate tax calculation across different jurisdictions.

You can also set global default tax settings. New tax jurisdictions that you register in Stripe will automatically inherit these default configurations when they sync into your CRM.

Accessing Tax Invoices and Reports

Once tax collection is active, you can access tax-related documents:

Tax Invoices: Generate detailed tax invoices for each sub-account, broken down by jurisdiction.
Tax Reports: Download tax reports for specific date ranges. You can export these reports for individual sub-accounts and jurisdictions, or in bulk as a ZIP file.
Sub-Account Access: You can enable a setting to allow your sub-accounts to view and download their own tax invoices from their billing section.

How to Set Up Global Tax Compliance

To configure this feature, navigate to the main agency billing area within your CRM. Look for a section labeled Tax Compliance or similar. The setup process will guide you through connecting to Stripe Tax, selecting collection modes for your jurisdictions, and configuring your products.

Configure Global Tax Compliance for Resold Products