A tax code is a classification of your product or service for Stripe Tax. We use this to make sure that the correct tax rate is applied to your transactions.
- Preset product tax code: The preset product tax code is the default tax code that applies to your Products when you don’t explicitly specify a tax_code. To learn more about the relationship between products, prices, and tax codes, and how they impact tax behavior, see the products, prices, and tax codes documentation.
You must select the most appropriate product tax code for every product or service you sell. Visit the tax settings page to select a preset product tax code to serve as the default. Afterwards, visit the product catalogue to confirm that the default is correct for your existing products. If not, edit each product to select a more appropriate product tax code for it.
- Default shipping tax code: The tax treatment type applied to shipping or delivery fees added to your charge. Some countries levy a distinct tax rate specifically on shipping fees. The default shipping tax code is used to identify this unique tax treatment.
If you’re selling digital goods or services, or if your business is based in the EU, you typically don’t need to select a tax treatment. However, if neither of these conditions apply to your business, select the tax treatment that’s most relevant to you. In the absence of a specific shipping tax code on a shipping rate, we default to using the tax treatment you’ve selected.