## Automatically Collect Tax on Invoices

On an invoice, Stripe Tax calculates sales tax, VAT, and GST. To calculate these for each line item, Stripe uses:

*   Your tax settings
*   The customer’s tax settings and location
*   The product tax code and price tax behavior

Stripe calculates the tax at the published rate at the time of invoice finalization. For example, if you initialize an invoice draft on December 20 and set it to finalize on January 15, then January 1 introduces a new tax rate. Subsequently, Stripe calculates the invoice at the new rate.

### Set up the Customer

We use the customer’s location to determine the relevant taxes to collect. Different countries have different setup requirements:

*   Customers outside of the US require at least a country-level address.
*   Customers in the US require a 5-digit postal code.
*   Customers in Canada require either the province or postal code.

#### Dashboard

You can add customer location information in the Customer details page by clicking **Edit** next to **Details**.

#### API

To add a customer’s location from the Invoice Editor, click the overflow menu () next to the customer. Select **Edit customer information**, click **Add additional details**, and scroll down to **Billing details**.

After you update the location, click **Update customer**. Stripe applies the new location to all of your customer’s future invoices unless you update