Why this exists
Sales tax is the world's most boring compliance problem. Rates change by state, county, and city. Digital goods vs physical vs SaaS all have different rules. VAT thresholds vary by country. Stripe Tax handles all of it — Wigmorean's Stripe Tax module wires it into Commerce and manages the paperwork.
What it does
- Calculates the correct tax at checkout based on customer address
- Handles digital goods vs physical vs services rules
- Tracks economic nexus thresholds (warns when you approach mandatory registration in a new state/country)
- Generates filing-ready reports per jurisdiction
- Applies exemption certificates (for B2B customers)
Setup
- In the Stripe Dashboard, enable Stripe Tax on your account and set your tax registrations
- In Wigmorean → Stripe Tax → Settings, confirm your Commerce store address (origin for tax)
- For each product in Commerce, set the tax category (General, Digital, Physical, SaaS, etc.)
- Save
No separate API key — it uses the same Stripe credentials from Credentials Vault.
Checkout flow
When a customer reaches checkout:
- Commerce builds the cart
- Stripe Tax module calls the Tax API with cart + customer address
- Stripe returns line-by-line tax amounts
- Checkout displays the breakdown (subtotal, tax, total)
- Payment completes; tax is recorded as part of the Stripe transaction
Zero friction for the customer — the math is correct, automatic, and jurisdiction-aware.
Tax exemption
B2B customers can upload exemption certificates (via Forms). The module validates against Stripe's tax exemption support and applies to future orders from that customer.
Reporting
Monthly reports per jurisdiction show: total sales, total tax collected, exempt sales, breakdown by tax category. Export as CSV or PDF for filing.
Economic nexus monitoring
The module tracks your sales by state and country. When you approach a threshold (e.g., 200 transactions in a state that triggers nexus), an admin warning fires so you can register before crossing.
Requires Commerce
Stripe Tax is meaningless without Commerce orders to apply it to. Activate Commerce first.