Use this article to set up tax in your Stripe account so you can take card payments through Stripe. It covers why myflow checks your Stripe tax settings, how to configure them, what a Stripe tax registration is, and how to turn on automatic tax calculation in myflow.
Why does myflow need tax settings in my Stripe account?
myflow checks your connected Stripe account every 4 hours. If your Stripe tax settings aren't configured, myflow turns off Card payments with Stripe and your customers can't pay by card.
You also get this notification in myflow:
"Your Stripe account does not have tax settings configured. Please configure tax and re-enable Stripe in myflow to receive payments."
myflow counts your Stripe tax settings as configured once you've chosen whether prices include tax by default (see the next section).
When the check passes, Settings > Invoicing & Receipts > Stripe in myflow shows The Stripe settings have been validated.
How do I set up tax settings in Stripe?
To set up tax settings in your Stripe account for myflow:
Sign in to Stripe and open the tax settings page: https://dashboard.stripe.com/tax/overview.
Check your head office address. This is where your business is based. Stripe fills it in from your Stripe business address, so you usually only need to confirm it.
Choose a preset product tax code. The tax code tells Stripe what kind of product or service you sell, so it can apply the right tax rate. Stripe uses it for every product that doesn't have its own tax code. Choose the code that best matches what you sell, for example General – Electronically Supplied Services for digital services.
Choose whether prices include tax by default. Set Include tax in prices to No. Stripe also calls this Exclusive: Stripe adds tax on top of your price.
Save your settings in Stripe.
After you save, your Stripe tax settings are configured. myflow validates your Stripe settings at its next check, which happens within 4 hours.
⚠️ Important: If you use automatic tax calculation in myflow, keep Include tax in prices set to No in Stripe. Any other setting gives the wrong tax amounts at checkout.
What is a tax registration in Stripe, and do I need one?
A tax registration in Stripe tells Stripe that your business is registered to collect tax, such as VAT (value added tax), in a specific country or region. You first register with the local tax authority, for example the Swedish Tax Agency (Skatteverket), and then add that registration in Stripe.
Without a tax registration for your customer's location, Stripe calculates 0 tax on the payment. myflow's Stripe check doesn't need a registration, but automatic tax calculation only charges tax in the places where you have one.
To add a tax registration in Stripe:
In myflow, go to Settings > Invoicing & Receipts > Stripe and click Stripe Tax Settings. This opens your tax registrations in Stripe. You can also go straight to dashboard.stripe.com/tax/registrations.
Add a registration for each country or region where you're registered to collect tax.
If your registration starts later, you can schedule it in Stripe to take effect on a future date.
Your registrations now appear as active in Stripe, and Stripe starts calculating tax for customers in those locations.
How do I turn on automatic tax calculation in myflow?
With automatic tax calculation in myflow, Stripe works out the tax at checkout and adds it on top of your price. The option only appears once myflow has validated your Stripe settings.
In myflow, go to Settings > Invoicing & Receipts.
Open the Stripe section.
Turn on Use automatic tax calculation when using Stripe.
Click Save.
Automatic tax calculation in myflow is now on. At the Stripe checkout, your customers must enter their billing address, and Stripe adds tax to the price based on that address and your tax registrations.
💡 Note: When automatic tax calculation is off, Stripe doesn't calculate tax. myflow sends Stripe the price including the VAT you set in myflow.
How do I turn card payments back on after myflow turned them off?
If myflow turned off card payments with Stripe because tax wasn't configured, turn them back on like this:
Set up your tax settings in Stripe, as described in How do I set up tax settings in Stripe? above.
In myflow, go to Settings > Invoicing & Receipts and open the Stripe section.
Under Card payments with Stripe, switch the toggle on.
Click Save.
Card payments with Stripe are on again in myflow. Within 4 hours, the Stripe section shows The Stripe settings have been validated.
Does myflow file or report my taxes?
No, myflow doesn't file tax returns or report tax to any tax authority. You're responsible for registering and filing with your tax authority. Stripe offers paid filing services in some countries. You can find them in the tax section of your Stripe dashboard.