The amount of tax calculated differs from what I see in Stripe Tax. Why is that?

There can be a few reasons why the tax amount calculated by Taxually differs from what you see in Stripe Tax. Here are some common examples:

1. Sales to Monaco: While Stripe Tax doesn’t currently support tax collection for Monaco, it’s important to note that Monaco is treated as part of France for VAT purposes. This means that certain transactions to Monaco may still be subject to VAT. Taxually’s system identifies these transactions and applies VAT where required, which may cause a difference in the amounts you see.

2. Currency Conversions: Taxes must be paid to the relevant tax authority in the local currency of that jurisdiction. Currency conversion rates can vary depending on the source of the exchange rate. Taxually’s software always uses the official exchange rate published by the respective tax authority on the date of the transaction, ensuring the most accurate calculation for compliance. Stripe Tax may use a different conversion rate, leading to slight variations in the tax amounts.

3. In some cases, transactions may lack key address details, making it impossible to determine where the tax should be paid. When this happens, the transactions are not reported to any jurisdiction. To avoid these discrepancies, ensure that all transactions have complete and accurate tax information.

4. Manual Transactions Without Stripe Tax: If you manually create invoices and have disabled Stripe Tax for these transactions, they will not appear in the transaction report that Taxually retrieves from Stripe. As of now, we do not support including these manual transactions in your tax returns, which can cause discrepancies between the two systems.

Time zone differences: Taxually uses UTC as a global time zone for tax reporting purposes, which can sometimes lead to differences. Learn more about how Taxually uses time zones.