Airstudio can add sales tax to session payments and invoices, calculate the right rate for each jurisdiction through Stripe Tax, and have Stripe remit it. This page covers turning it on, how the rate is chosen, and what happens on refunds.

Turning tax on

  1. Connect Stripe. Tax settings are unavailable until you have.
  2. In Settings › Studio Info, turn on Charge Sales Tax.
  3. In the Tax Settings panel below it, enter your head office address and add a Tax Registration for every state or province where you are registered to collect. Stripe Tax collects nothing until both exist; the panel shows a banner while they are missing.
  4. Give every product a Stripe Tax Code, and check the code on the five system products. The code tells Stripe how the item is taxed in each jurisdiction.

With Charge Sales Tax off, no tax is calculated anywhere and the Tax columns are hidden.

How the rate is chosen

Charge Taxed at the rate for
Session payment at booking, and session fees The job's location, where the photography takes place
Invoice built from sessions The job's location, pre-filled as the Tax Location on the invoice
Invoice built from products The Tax Location you enter on the invoice

A family living in one state and photographed in another is taxed where the session happens. If Stripe Tax cannot return a rate, for example because you are not registered in that jurisdiction, Airstudio falls back to the Default Session Sales Tax Rate for the job's team, then the studio-wide default, from Studio Info. A fallback rate is a flat percentage and is not remitted by Stripe.

The booking page and the staff booking form show a live Subtotal / Tax / Total before the charge is made, and the confirm button stays disabled if the tax lookup fails, so a customer is never charged a different amount from the one displayed.

Tax-exempt organizations

Turn on Tax Exempt on the organization. New invoices for it default to Charge Sales Tax off. You can still override on any invoice.

What the customer sees

Receipts and invoice emails show Subtotal, Sales Tax, and Total whenever tax was charged. The Payments and Invoices tabs have a Tax column, and both reports include tax per row.

Refunds

When a taxed payment is refunded, the tax is reversed in proportion to the refund and the reversal is recorded in Stripe Tax, so your filings reflect the money actually kept.

Who remits

Account Remittance
USD Standard, USD Express, CAD Standard Stripe Tax calculates, collects, and files on your behalf for registered jurisdictions
CAD Express Tax is added as a Sales Tax line on invoices at the calculated rate, but the studio files and remits it
Any account, fallback rate The studio remits

Cost