How to Manage the Tax Behavior of Your Users Using the Stripe Platform

1. Accessing the Stripe Customer Profile

To manage tax settings for a user, start by locating the customer in the Coapp platform and navigating to their Stripe profile:

1. Log in to the Coapp Admin Dashboard.

2. Go to the Manage Members section and search for the user you want to manage.

3. In the user’s profile, locate the Stripe Customer ID under their subscription details.

4. Click on the Stripe Customer ID (e.g., cus_RLNkxKgmcMEWsh). This will redirect you to the user’s Stripe profile in the Stripe Dashboard.

Once in Stripe, you can proceed with reviewing and managing the customer’s tax information.

2. Reviewing Tax Information

After accessing the customer profile in Stripe, review their subscription details and payments to understand their current tax settings:

• Check if the tax status is set to Taxable, Exempt, or Reverse charge.

• Look for existing tax IDs (if any) under the customer’s billing details.

3. Updating Tax Behavior

To modify the tax behavior:

1. Click on the Update Customer button in the Stripe customer profile.

2. In the dialog box, locate the section for Tax Status and Tax IDs.

Configuring Tax Status:

• Choose one of the following:

• Taxable: The customer is subject to sales taxes.

• Exempt: The customer is not subject to sales taxes.

• Reverse Charge: Commonly used in B2B transactions where the customer self-reports tax obligations.

Adding or Updating Tax IDs:

• Select the relevant tax jurisdiction (e.g., DE VAT for Germany).

• Enter the customer’s valid tax ID in the appropriate field.

4. Confirming Changes

Once all changes are made:

1. Click Update Customer to save the settings.

2. Stripe will automatically adjust tax calculations for future invoices based on the updated settings.

5. Validating Updates

After updating, validate the customer’s subscription details:

• Ensure that the next invoice reflects the new tax settings.

• Verify that tax-inclusive or exclusive amounts are applied correctly.

6. Key Notes:

• Compliance: Make sure your configuration complies with regional tax regulations (e.g., VAT rules in the EU).

• Documentation: Keep records of customer communications and tax-exempt certificates (if applicable).

• Automation: Consider using Stripe’s Tax feature to automate tax calculations based on customer location and jurisdiction.