Stripe's automatic tax calculation feature makes it easy to calculate taxes during checkout for payments received in Picsello. This allows Picsello to maximize compliance with tax laws down to the city/county level, while simplifying the reporting process since all transactions are recorded and tagged with the appropriate tax code (service, product, etc).
Picsello relies on your tax settings in Stripe to determine how to charge your clients for payment received at checkout. Until you complete all tax steps within Stripe, Picsello will not charge any tax when your clients pay you.
You will need to work with your certified CPA to understand how you will report products and services in your state.
Configure Tax Calculation in Stripe
To collect taxes in Stripe, follow the steps below:
1. Log in to Picsello and click Settings from the navigation bar, then click Finances.
2. Click Go to Stripe. Here you will be redirected to Stripe.
3. In Stripe, click More from the Stripe navigation bar and select Tax from the drop-down menu.
4. Confirm or update the origin address of your business.
This is the address where your business is located.
5. Select a Default product tax category.
6. Add the countries and states where you're registered to collect tax.
7. Confirm that automatic tax calculation is enabled to complete the setup.
This is the default setting in Stripe.
Learn more about collecting taxes in Stripe: