Introduction
Once you’ve finished the Anrok & Stripe integration process, there are still a few additional steps you’ll need to complete within Stripe before you can start creating and editing invoices. This will ensure that your Stripe account has been properly configured for tax calculation.
Turn off Stripe's automatic tax calculation
Stripe's automatic tax calculation will block Anrok’s tax calculation from appearing on your invoice. It’s important to make sure automatic tax calculation has been turned off on your Stripe account.
Try turning off Stripe's automatic tax calculation in the demo above ☝️
- In the Stripe app
, go to Tax settings. Take me there!
- Under Automatic tax calculation, turn off the toggle
to Use automatic tax calculation.
- If you are using an integration, make sure your integration has
automatic_tax[enabled]=false
.
Archive your products default tax rates
Default tax rates on your products will block Anrok’s tax calculation from appearing on your invoice. It's required for you to archive any custom tax rates present on your Stripe products.
Try archiving a product's default tax rate in the demo above ☝️
- In the Stripe app
, go to Products, then select the Tax rates tab. Take me there!
- Next to an
tax rate, click the options menu button
, then select Archive tax rate.
Make your products tax exclusive
Since tax rates can fluctuate, Anrok can only add tax on items that have a set base price. Anrok does not support tax-inclusive pricing and requires all products to be tax exclusive.
Try making products tax exclusive in the demo above ☝️
- In the Stripe app
, go to Products. Take me there!
- Click the options menu button
next a product, then select Edit product.
- Under Price, deselect the checkbox
next to Include tax in price.
- When you are finished, click Save product.
Create a rule to exclude tax from revenue (Optional)
Anrok adds tax as a line item on Stripe invoices, so by default, it will be included in any revenue counts or reporting done in Stripe. To adjust this, you can create a rule to exclude the tax line item by filtering for "Tax" in the line item description.
Try making a rule to exclude tax from revenue in the demo above ☝️
- In the Stripe app
, go to Revenue recognition, then select the Rules tab. Take me there!
- Click Add rule, then under Rule details, add the following Information:
- Name — add a rule name for internal use only.
- Apply to — select Invoices.
- Condition — select Line item description, contains all of the following, then enter
Tax
.
- Under Revenue treatment, add the following Information:
- Treatment — select Treat as tax.
- Allocation — select 100%.
- Under Effective period, select the following information:
- Start — select All past dates.
- End — select Indefinite.
- When you are finished, click Save rule.
Create a "Tax" product for tax calculation mapping (Optional)
When Stripe applies Anrok's tax calculation as a line item, Stripe creates a one-time product that is immediately archived systematically. To make reconciliations easier, we recommend creating a "Tax" product in Stripe for Anrok to map its tax calculations.
- In the Stripe app
, go to the Products tab, then click +Add product. Take me there!
- Under Name, enter
Tax
. - Under Pricing model, select Standard pricing.
- Under Price, enter
$0
, then select One time. - Click Set as default price (if not already selected).
- When you are finished, click Save product.
- Provide the product ID to support@anrok.com so we can complete the product mapping process.
Add VAT IDs to your customer profiles
Adding a VAT ID to your customer records will be essential for tracking international economic nexus exposure. Once a VAT ID has been added, Anrok can use your customer's VAT ID to verify an invoice's taxability in a given country/region.
Try adding a VAT ID to a customer's profile in the demo above ☝️
- In the Stripe app
, go to Customers. Take me there!
- Select a customer contact, then next to Details, click Edit.
- Click the drop-down button
next to Billing information.
- Under Tax ID, select an ID type from the drop-down, then enter the customer's VAT ID.
- When finished, click Update customer.
Now that you’ve set up your Stripe account to work smoothly with Anrok, let's take a look at how to make sure Anrok's sales tax is added to your invoices. Check out our best practices for manual invoicing in Stripe.